- BONK recovered from critical support and showed strong fundamental demand
- Increased open interest and stabilizing liquidation levels indicate growing investor confidence
BONKS rose 7% in the last 48 hours before falling again, driven by high trading volume as investors took advantage of the recent decline. BONK was valued at 0.00002009 USD with a 24-hour trading volume of $470 million, representing an increase of 8.83% over the above period, despite a decline of 19.55% over the past week.
In fact, BONK seemed to reflect the market sentiment of other prominent cryptocurrencies during this period.
Technical analysis: indicators and support levels
BONK’s recent price action suggested a rebound from a critical support level. After falling below $0.00001815, BONK recovered somewhat on the charts, suggesting strong fundamental demand despite the recent declines.
Meanwhile, the Aroon indicator showed mixed signals. The Aroon Up (blue) was at 85.71%, indicating strong upward momentum. The Aroon Down (orange), on the other hand, was at 21.43% – a sign of easing downward pressure.
In fact, this divergence indicated a possible trend reversal, although a consistent upward move in the Aroon Up is essential to confirm a sustained uptrend.
Source: TradingView
At press time, the Relative Strength Index (RSI) was at 41.11, recovering from oversold conditions but remaining below the neutral level of 50. This suggests that while immediate selling pressure has eased, the market has not yet entered a fully bullish phase.
The Awesome Oscillator (AO) remained negative, but the histogram bars showed signs of decreasing bearish momentum.
A positive reversal of these bars would further confirm a bullish trend reversal.
Price targets and potential profits
The price of BONK recently fell to around $0.00001815 before recovering to its press time level of $0.00002103. This price movement was crucial as it reclaimed the previous support level, indicating potential for further upside if buying pressure continues.
If BONK holds the support level at $0.00002061 and rises to the first resistance at $0.00003391, it would represent a potential gain of about 64.56%.
If the second resistance at $0.00004440 is reached, the potential gains could also be significant.
Source: TradingView
Accordingly Coin jarOpen interest for BONK increased by 11.22% to reach $7.16 million. This increase in open interest can be interpreted as a sign of growing investor confidence in the potential for further price increases.
Liquidation trends and market sentiment
What is particularly noteworthy is that in early March there was a significant increase in short liquidations, which exceeded $4 million and was accompanied by a sharp decline in the BONK price.
Recently, liquidation levels have stabilized, with a balanced ratio of activity between long and short positions and little price volatility. This could indicate a consolidation phase where neither buyers nor sellers have a dominant advantage.
In fact, according to a recent analysis by AMBCrypto, BONK formed a symmetrical triangle pattern, indicating a consolidation phase that usually precedes a breakout.
It is worth noting, however, that at the time of writing, the memecoin appeared to have recovered some of its recent losses on the charts. Still, technical indicators remained strong enough to suggest that this could be temporary.
