- BONK was trading in a key supply zone that previously led to the asset’s decline.
- Bullish activity could help BONK defy the bearish odds in the market.
Bonk ‘s[BONK] 10% rally in the past 24 hours is a continuation of its price movement over the past week and month, during which the asset gained 37.89% and 88.37% respectively.
However, unlike before, the asset is now stuck in a critical position on the chart, trading in a major supply zone. Will bulls or bears take control? AMBCrypto’s analysis uncovers the next potential move for the asset.
BONK hits major supply level
BONK has entered a key supply zone on the 1-day chart, historically known for pushing assets lower.
In the past, trading in this zone led to lower highs and lower lows, followed by a six-day decline. If BONK reacts similarly, a correction is likely, with its price expected to drop.
However, if it breaks through this level, the rally could continue, potentially leading to a market breakout.
Source: TradingView
There are two targets of interest: the near-term target at $0.00003689, representing a 51% gain, and the long-term target at $0.00006230, reflecting a potential 155% increase.
At the time of writing, the Exchange Netflow—which determines whether spot traders are primarily buying or selling—shows that more participants are currently selling.
In the past 24 hours alone, $4 million worth of BONK has been sold at this level. However, additional data shows that the bulls are not stepping down.
Bulls maintain bullish stance against selling pressure
Bulls have maintained an active position in the market despite sustained pressure from sellers.
At the time of writing, the Open Interest Weighted Funding Rate shows that the market remains in bullish territory.
Source: Coinglass
So far, this metric has stayed in the positive region for 20 consecutive days since April 22, analysis reveals.
This bullish sentiment has helped BONK recover quickly after each price decline, as the majority of derivative contracts come from buyers.
There’s more. The long-to-short ratio, which reflects whether buying or selling volume dominates the market, shows that buying remains dominant.
Source: Coinglass
This implies that, despite the $4 million in selling pressure within this supply zone, derivative traders continue buying, thereby sustaining BONK’s momentum.
Other metrics also show that BONK still has the potential to rally.
Indicators point to a bullish outlook
Technical indicators like the Bull Bear Power and Chaikin Money Flow both point to bullish conditions in the market.
The Bull Bear Power indicator helps determine whether bulls (buyers) or bears (sellers) are in control.
Source: TradingView
Currently, with the formation of a green histogram, the indicator suggests that buyers are in control of market movement.
Similarly, the Chaikin Money Flow (CMF) has remained in a bullish region above 0.00, indicating that overall market volume supports continued upward momentum.
