- BONK has a bearish market structure and strong downward momentum.
- Yet the former resistance zone at $0.000014 is likely to act as a demand zone in the coming days.
Bonk [BONK] rallied 278.5% between 13th December and 15th December. The past ten days saw the meme coin drop lower but this was no more than a large pullback. The bulls have reason to be confident of another run northward.
A recent AMBCrypto report noted that trading volume in the spot markets was down as prices slumped lower. Yet, evidence from the six-hour price chart showed buyers were very much still in the fight.
The former bearish order block is now an area of interest
Source: BONK/USDT on TradingView
In the past two weeks, BONK has declined by 55.5%. It was trading at $0.0000155, close to the $0.0000147 support level that is the 78.6% retracement level, and additionally, the $0.000014 zone, marked in cyan, is a zone of demand.
It had served as resistance earlier this month but has been breached. The rally above this resistance showed that bulls controlled the market.
The OBV has declined in the past twelve days, but not as substantially as it rose in December. This meant that selling pressure has not been extraordinary.
The market structure of BONK on the 6-hour chart was bearish. The RSI was at 34 at press time to indicate strong downward momentum.
However, a revisit of the $0.000014 area would offer a good risk-to-reward buying opportunity, with stop-loss orders set just above the $0.000012 mark.
The market sentiment remained in favor of the sellers
Source: Coinalyze
In the past two days, the Open Interest of BONK slid lower. This came alongside a drop in prices of the meme coin from $0.0000192 to $0.0000155, a near 20% drop within two days.
The OI and price drop highlighted bearish sentiment in recent hours.
Realistic or not, here’s BONK’s market cap in BTC’s terms
Traders can wait for the OI to begin to rise alongside prices after a revisit to the $0.0000147-$0.000014 area. This would reinforce the idea that BONK was set to bounce higher.
To the north, the $0.000022, $0.000035, and $0.000041 levels are expected to act as significant resistances.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
