Bonk (BONK) is making headlines due to its recent price decline and reduced trading volume. Despite this, the broader market outlook for the altcoin suggests a potential rebound in the near future as the price nears a significant support level. Bonk has been one of the top-performing memecoins since the start of the month and could see further gains if key support points hold.
What Factors Could Drive a Bonk Surge?
A notable development is the U.S. Securities and Exchange Commission’s (SEC) decision to stop classifying Solana (SOL) as a security, which is considered a partial win for SOL. This shift may positively impact BONK as market conditions become more favorable for a bullish trend.
Currently, BONK is priced at $0.00002637, reflecting a 5.1% dip over the past 24 hours. The altcoin remains above its 50-day and 200-day exponential moving averages (EMA), signaling a bullish trend. Additionally, the uptrend is supported by a rising trend line, underscoring a strong bullish outlook for Bonk.
Will BONK Overcome Resistance Levels?
BONK faces minor resistance around $0.0000292. Surpassing this could propel the price by 30% to the next significant resistance at $0.00004, aligning with prior peaks and a crucial supply zone. Conversely, a price drop might find support at $0.0000255 (50-day EMA) and $0.0000225 (200-day EMA). Falling below these marks would invalidate the ascending triangle pattern.
Key Inferences for Investors
Noteworthy insights include:
- SEC’s decision on Solana could positively impact BONK.
- Bonk’s price stability above 50-day and 200-day EMAs indicates a bullish trend.
- Potential price surge if minor resistance at $0.0000292 is overcome.
- Support levels at $0.0000255 and $0.0000225 could act as safety nets.
The Relative Strength Index (RSI) for BONK stands at 54.95, near the bullish zone, suggesting further upward potential. Chaikin Money Flow (CMF) at 0.06 also supports a positive outlook, indicating a favorable money flow towards Bonk and modest buying pressure.
Coinalyze data reveals that market participants are accumulating Bonk, although Open Interest (OI) has fallen by 4% in the past day. The Long/Short (L/S) ratio has risen by 11.11% in the last week, reaching 1.879, signaling that investors expect a price increase. Dune Analytics reports that Bonk has been among the top-performing memecoins over the past two weeks, with an 18.7% price increase, trailing only BOME and COQ.