BONK price plummeted 1.65% to $0.000029 on Tuesday despite a general uptick in the broader crypto market. The buying pressure uplifted Bitcoin price above $60000 following the recently released U.S. Producer Price Index (PPI) monthly rate of 0.1%, which came in lower than market expectations. This indicates that inflationary pressures might be easing more than anticipated and could lead to the Federal Reserve considering rate cuts shortly. Will this recovery be sustained?
BONK Price Poised to Retest Major Support
The Bonk price has shown an aggressive correction trend since late July, displaying a V-top reversal in the daily chart. The bearish reversal plunged the asset from $0.0000339 to $0.00001785, according to a 47.2% loss.
However, selling pressure recently eased for this Solana meme coin as the buyer gained suitable support from the channel pattern’s lower trendline (blue). Since February 2024, this chart pattern has led to a steady recovery trend within two parallel trendlines.
By press time, the BONK price was $0.000019, boosting its market cap to $1.372 Billion. While the near-term trend in the crypto market is sideways, this meme cryptocurrency could continue to hover above the ascending trendline to recuperate bullish momentum.
Amid the consolidation, the BONK coin has seen a notable upswing in Open Interest since last week. Data from Coinglass shows that Open Interest climbed from $5.7 million to $6.5 million, an increase of approximately 14%.
This upswing in OI indicates growing market confidence and potential bullish momentum as traders increase their positions, suggesting that this asset could be gearing up for a significant price movement shortly.
The MACD (blue) and signal (orange) line nearing a bullish crossover could accelerate the bullish momentum for the higher rally.
Thus, a potential rebound could drive the coin price by 30% to challenge a downsloping trendline at $0.000024.
The overhead trendline drives the current correction trend in the BONK price. In addition, the price trading below the daily Exponential moving average (20, 50, 100, and 200) hints at the path to least resistance of down.
Therefore, a possible breakdown below strengthens the seller’s grip and pushes the altcoin 38% to seek support at $0.000012.
Frequently Asked Questions (FAQs)
The 14% increase in BONK’s Open Interest is attributed to growing market confidence as traders position themselves for a potential bullish rebound.
The $0.000018 level is significant because it acts as strong support reinforced by an ascending trendline, indicating heavy accumulation.
If BONK breaks below its current support levels, particularly the ascending trendline and key moving averages, it could face a further decline of up to 38%,.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bonk-price-poised-for-30-surge-ahead-of-key-resistance/
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