BONK’s price has recently surged by 8% over 48 hours after bouncing off a crucial support level. This uptick in price indicates positive short-term momentum. However, caution is advised due to the rising wedge pattern that BONK has been forming. This technical pattern often precedes a breakout, but it also suggests potential volatility.
At present, BONK is trading at $0.00002906, reflecting an 8% increase from its recent support level of $0.00002823, following a brief dip. The next significant resistance level to monitor is $0.00003592, which could be a critical point for further price movement.
BONK Price Testing Key Level and Market Dynamics
BONK is currently testing a crucial level of $0.00002940, which previously acted as a strong resistance zone but was recently broken on July 19. A breakout above this level could signal a bullish rally towards the next resistance at $0.00003592.
Analysis of the Bitmex liquidation heatmap, based on Coinglass data, reveals that most trading liquidations are concentrated around these price levels. This suggests that many investors have set their stop-loss orders here, which could increase market volatility.
The recent increase in BONK liquidations, particularly in short positions, might have contributed to the recent upward price movement. Additionally, open interest-weighted funding rate data shows significant volatility over the past two months.
Currently, the funding rate is at a neutral equilibrium level of zero, indicating a balanced market sentiment in terms of funding rates.
BONK’s Price at a Critical Juncture: Technical Outlook and Potential Breakout
BONK’s price is currently at a critical point, with the rising wedge pattern serving as a bearish indicator that often signals a potential downward breakout. However, this bearish pattern may be invalidated if BONK manages to break above the rising wedge’s resistance level, which could lead to a bullish breakout instead.
The recent sharp 8% increase from support levels highlights strong short-term buying pressure. This surge suggests that there could be significant upward momentum if BONK surpasses the key resistance level of the rising wedge.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
