Connect with us
Active Currencies 14775
Market Cap $2,267,011,497,182.20
Bitcoin Share 54.17%
24h Market Cap Change $-1.18

BONK price prediction – Watch out for a short-squeeze in the near term!

2min Read

The 20 and 50-day BONK moving averages formed a bearish crossover last week.

BONK price prediction - Watch out for a short-squeeze in the near term!

Share this article

  • The bearish market structure of BONK showed a 20% price drop could commence
  • A short squeeze could take place before the downward move continued

BONK has fallen by 13% over the last seven days, with the altcoin suffering alongside the rest of the memecoin market. The 78.6% Fibonacci retracement level was lost to the bears, and a sweep of the April lows appeared likely too.

The liquidation levels showed a short-term price bounce was possible. And yet, the bearish dominance will likely yield another 20% price drop.

BONK loses the 78.6% retracement level – Will it fall to late February lows?

BONK 1-Day TradingView

Source: BONK/USDT on TradingView

The 20 and 50-day moving averages formed a bearish crossover last week, showing a downtrend in progress. The MACD agreed with this and highlighted that downward momentum was superior.

Based on the rally in February and March, a set of Fibonacci retracement levels (yellow) were plotted. In April, the 78.6% level at $0.0000188 was breached, but BONK recovered a week later.

The same level gave way before the selling pressure on 5 August, and again on 15 August. Bulls will be hoping history will repeat itself. Additionally, the A/D indicator was on a downtrend, reducing the chances of a quick recovery.

Liquidation levels showed where swing traders can bid

BONK Liquidation Levels

Source: Hyblock

The liquidation levels delta was deeply negative too. This showed there were too many short positions open, and that a short squeeze or a price move upwards to hunt this liquidity was possible.

The notable liquidity pockets that could be targeted were at $0.0000188 and $0.00002.

BONK Liquidation Heatmap

Source: Hyblock

Swing traders can use these levels to open short positions because the liquidation heatmap of the past month highlighted $0.000015 as a hefty liquidity pool.


Realistic or not, here’s BONK’s market cap in BTC’s terms


The strong magnetic zone is likely to pull BONK to it before a bullish reversal towards the next big liquidity pool at $0.0000225 can commence.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.