- The weekly timeframe showed a bearish structure, and $0.000026 must be flipped to support to change this.
- The high demand for BONK meant that a move beyond the May high was possible later this month.
Bonk [BONK] has seen increased demand and strong bullish sentiment in recent days.
Coinalyze data revealed that the memecoin saw a 4% price hike over the past 24 hours, but an 8% increase in Open Interest. The speculative activity was another market of bullish strength.
The price movement of Bitcoin [BTC] was likely to affect the altcoin market, including the memecoin sector. A drop below the $107.3k level could flip the short-term market expectations bearishly.
If the king coin continues to trend sideways or higher, there is a good chance BONK might be able to challenge and surpass the local highs.
BONK crypto charges toward May highs
Source: BONK/USDT on TradingView
The move beyond $0.000018 on the 5th of July was the first true sign of recovery.
In a recent report, AMBCrypto highlighted the bullish short-term expectations for BONK. This has come to pass, evidenced by the strong rally beyond the $0.00002 round-number resistance.
The OBV soared past the highs from May, and the trading volume bars showed remarkable daily trading volumes over the past few days.
This surge in demand could push BONK crypto prices toward the $0.000025 level, the price high from May. The Fibonacci levels showed that the 23.6% extension level at $0.0000298 was a viable price target for the bulls.
However, traders and investors must remember that the weekly chart was bearish, until the $0.000026 region could be flipped to support.
Source: Coinglass
The liquidation heatmap confirmed the expectations from the price chart. The $0.0000256-$0.0000262 region was a sizeable magnetic zone.
The concentration of liquidation levels here meant that a bearish reversal was a possibility.
Since the demand and momentum behind the bulls were strong, the liquidity cluster overhead might only cause a minor pullback before another attempt to move higher.
Therefore, BONK traders already in long positions could look to take profits around $0.000026 and wait for price action to develop before making their next move.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
