Over the past week’s market cycle, Bonk [BONK] has gained an impressive 23.3%. If this bullish momentum continues, the coin has the potential to extend further. However, this strong rally is threatened by an upper resistance line, which could limit further price gains.

Potential hurdles on BONK's path to a big rally

BONK's momentum was fueled by strong buying pressure from a bounce off a key support level, which has historically pushed prices higher.

This support level is clear on the weekly scale, but BONK now faces a major challenge at the resistance level of 0.000023471. Failure to clear this level could see the price revisit the support level.

If BONK manages to break above this resistance and sustains trading above it, it could move towards at least 0.000038816, with the potential to reach higher levels in the near future.

Bulls show growing interest in BONK

Technical indicators are signaling increased interest in BONK, suggesting a major market move could be imminent.

Analysis from TinTucBitcoin, using the Relative Strength Index (RSI) and Chaikin money flows, supports this observation.

The RSI, which measures the speed and change of price movements on a scale of 0 to 100, is trending up for BONK, indicating strong buying activity.

Similarly, Chaikin Money Flow, which measures inflows and outflows, has shifted upward. This change indicates an increase in new capital inflows into BONK, indicating active buying activity.

If these indicators continue to rise, BONK is expected to hit the previously mentioned target price and could mark a low before making further gains.

In the short term, BONK is in the hands of bulls.

While BONK is poised for a long-term rally, the short-term outlook is also promising. According to Open Interest data from Coinglass, buyer interest is high, with long-term trades being actively executed.

Current data shows that BONK Open Interest has increased by more than 70% in the past 24 hours, reaching $13.17 million.

This growth resulted in short-term traders incurring a total loss of $245.45k over the same period.