Technical Analysis Shows 77% Upside Potential at Key Support

TLDR

• BONK has maintained an uptrend within a rising channel pattern after a 140% recovery since April
• The price is defending the 200-day EMA support level at approximately $0.000018-$0.000020 range
• Bulls could target $0.000025 and $0.000035 if support holds, representing up to 77% potential gains
• Derivatives market shows renewed interest with Open Interest rising from $8.5 million to over $12 million
• A break below the 200 EMA would invalidate the bullish outlook and favor short sellers

BONK currently sits at a critical juncture following its impressive 140% recovery since April. The memecoin has established a clear uptrend pattern within a rising channel formation.

The 200-day Exponential Moving Average has emerged as a pivotal level for BONK’s price action. This level previously acted as resistance in April but has since been confirmed as support in May.

The support zone aligns with the lower boundary of the rising channel pattern. This confluence strengthens the technical significance of the current price level.

BONK’s price action remains above both short-term and long-term moving averages. This positioning indicates that bulls maintain control of the market structure.

The Relative Strength Index has stayed above the midpoint since April. This technical indicator suggests demand has consistently exceeded supply during the recent uptrend.

Bullish Targets and Momentum Indicators

If the current support level holds, BONK faces immediate resistance at $0.000025. A break above this level would open the path toward $0.000035.

A rally to $0.000035 would represent approximately 77% gains from current levels. This target aligns with the upper boundary of the established rising channel.

The Chaikin Money Flow indicator shows capital inflows have stagnated since mid-May. This suggests the memecoin has yet to attract massive buying interest after the recent consolidation period.

Despite the flat money flow, other metrics paint a more optimistic picture. Spot market demand has shown signs of recovery, albeit at a measured pace.

Derivatives Market Activity

The derivatives market tells a different story regarding trader sentiment. Open Interest has surged from $8.5 million to over $12 million recently.

This increase in Open Interest reflects growing speculative interest in BONK futures contracts. Higher derivatives activity often precedes significant price movements.

The Cumulative Volume Delta for spot markets shows gradual improvement since mid-May. This metric tracks the balance between buying and selling pressure.

Liquidation data reveals key price magnets around the $0.000019-$0.000020 area. These levels correspond with major moving average support zones.

The $0.000018 level represents another critical liquidation zone. This price point aligns with the 100-day EMA support level.

A sustained break below $0.000018 would shift market structure in favor of short sellers. This level serves as a logical stop-loss point for bullish positions.

The confluence of technical levels around $0.000018-$0.000020 makes this zone crucial for BONK’s near-term direction. Bulls need to defend this area to maintain the uptrend scenario.

Current derivatives positioning shows renewed speculative interest, with Open Interest climbing to over $12 million from previous lows of $8.5 million.