- BONK surged by 21% to break its key resistance level in the last 24 hours
- Metrics indicated a potential bull rally in the short term
BONK, one of the market’s more popular memecoins, has been on a roll recently. At press time, it had surged by an impressive 21% in the last 24 hours to trade at $0.00003148 on the charts. This price action is significant, especially since it sets the stage for a potential bullish run towards key resistance level of $0.00003592.
Here, it is worth noting that a breakout through a significant resistance level always results in a shift in market sentiment.
This breakout comes after a period of consolidation, indicating that the bulls have regained control.
Source: BONK/USD, TradingView
Open Interest surge signals growing market participation
AMBCrypto’s analysis of BONK’s Open Interest data from Coinglass revealed a significant spike in OI, alongside the price surge. Here, a surge in open interest signifies growing market participation and could be a sign of a continued bullish rally.
A positive correlation between price and open interest usually implies a strengthened market trend. In this particular case, it is a favorable indicator of further price hikes.
Source: Coinglass
BONK liquidation heatmap reveals bullish momentum
To add to the aforementioned spike in open interest, AMBCrypto further analysed Coinglass liquidity data to assess the liquidity level.
We found that there is a concentration of liquidations at lower price levels. This means that short positions are being kicked out of the market, potentially fueling BONK’s price movement further upwards.
Source: Hyblock Capital
What next for BONK?
Thanks to the recent 21% surge and breakout from key resistance levels at $0.00002940, BONK has set the stage for a potential run towards $0.00003592. The confluence of increased open interest, bullish liquidation patterns, and strong price action suggests that BONK may continue its upward momentum.
However, short term price corrections cannot be completely written-off as the market is volatile.
