- BONK sell orders suggested there was a lot of liquidity in the north.
- The lower timeframe demand zone could yield a positive response.
Bonk [BONK] rallied past the highs it set on the 15th of December. This breakout saw the bulls take prices to the $0.0000477 level, 36% above the previous high. Since then, prices have retraced lower.
A demand zone was identified, but it remains to be seen whether BONK could rebound and climb higher, or whether prices would decline further. The order book provided some clues.
The lower timeframe demand zone
Source: BONK/USDT on TradingView
On the 4-hour timeframe, BONK saw some consolidation at the $0.0000312-$0.0000342 region on the 4th of March. It retested the same area in a few hours before press time. The 12-hour chart showed that momentum and market structure remained strongly in favor of the buyers.
If the demand zone highlighted in cyan was defended, BONK could likely rally toward the $0.0000509 Fibonacci extension level. A drop below $0.00003 would signal a structure break in the 1-hour timeframe and could see BONK prices fall.
The buying volume has been remarkable over the past few days. As things stand, a major correction was the inference from the charts.
The limit sell orders were thick
Source: MobChart
AMBCrypto’s analysis of the MobChart order book data showed that there were multiple limit sell orders worth more than $100k to the north.
Realistic or not, here’s BONK’s market cap in BTC’s terms
In particular, the $0.000045 and $0.000048 were stiff resistances. They had $550k and $932k worth of limit sell orders respectively.
To the south, the $0.00003 and $0.000028 support levels had $318k and $187k worth of limit buy orders respectively. This meant that if the sellers seized the upper hand, they could force prices lower relatively quickly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
