- BONK surged nearly 10% after rebounding from wedge support, hinting at growing bullish momentum.
- On-chain and technical metrics lean bullish, setting the stage for a potential breakout above resistance.
Bonk [BONK] has been respecting a rising wedge pattern since the 4th of March, with the memecoin’s prices respecting the ascending support trendline.
In early April, the memecoin hit a local low of $0.00000884 before rebounding and maintaining a steady upward pace.
BONK has, since then, enjoyed a steady bullish surge while obeying the wedge’s trendline support level.
The recent bounce off the support level has initiated a fresh wave of optimism among holders.
According to CoinMarketCap data, the memecoin surged by nearly 10% following the move, suggesting a building of bullish momentum.
This surge comes as prices are still compressing within the wedge, usually a sign of an imminent breakout.
Source: TradingView
Stochastic RSI hints at potential reversal
Technicals also align with this bullish outlook.
The Stochastic RSI sat in an oversold region, as seen on the daily chart. This points to BONK’s reducing selling pressure and increased likelihood for a potential reversal.
If BONK’s current bullish momentum holds, the wedge pattern may give way to a bullish breakout in the short run.
On-chain metrics lean bullish
On-chain metrics are in favor of BONK bulls. According to AMBCrypto’s analysis on CoinGlass data, the memecoin’s Weighted Funding Rates stayed neutral, between 0% and 0.02%, throughout the consolidation.
The lack of over-leverage lowers the chances of violent liquidations disrupting a rally.
Source: CoinGlass
Also adding strength to the bullish argument are Liquidation Heatmaps.
There are numerous liquidity clusters above the $0.00002 mark, which are points where the price can accelerate very fast if bulls manage to break this psychological resistance.
Source: CoinGlass
With price holding firm at wedge support, reversal signals flashing, and liquidity stacking above, the setup leans bullish.
A breakout above $0.00002 could open the floodgates for BONK to test new resistance levels.
