- BONK broke out of an ascending trend channel that has held its price action since the launch of the memecoin.
- Despite price-sweeping liquidity, there’s no substantial urge to move higher, which could set it for a further drop if buyers delay.
The daily chart of Bonk [BONK] displayed a simple breakout out of an uptrend channel that had dictated price action since the meme token’s launch.
The channel with a rising resistance and support had earlier held back price with multiple tests and bounces in 2024.
BONK recently dipped below the channel bottom at $0.00000933, sweeping liquidity below and causing a weak positive reaction at the back of the daily candle’s tail, indicating initial buying interest.
The lack of strong bullish momentum suggested a potential further drop if the buyers do not step in.
Source: TradingView
The MACD readings of -0.00000214 for the MACD line, -0.00000194 for the signal line, and -0.00000019 for the histogram indicate bearish momentum. The falling MACD line below the signal line, along with the declining histogram, suggests that stabilization may soon be approaching.
The breach of structure below $0.00000933 marked a significant turning point, with the price moving upward following the sweep.
If the price remains above this level, it could signal continued buying interest, potentially targeting the channel support that has now turned into resistance.
BONK’s Dex trading volumes and transfers
Looking at BONK’s Dex trading showed that transfer value peaked above $45 million as the respective number of transfers hit almost 150,000 before dropping to $60,000 transfers. The transfers then climbed to $110,000 and 120,000 transfers respectively.
Such increase in transfer value and volume may be an indication of higher interest and liquidity that can propel a bull run in price for BONK. The hike could also mean traders capitulating, bearing in mind price is generally declining.
BONK’s DEX Trading showed total trades peaked at around 90,000 this week, as of press time, with a selling volume of over $4M and a buying volume of $4M. However, the selling volume was slightly higher.
Source: Solscan
Total trades declined to 40,000 with a selling volume of $1 million and a buying volume of $2 million, suggesting more traders bought as the price declined.
The totals were $2.11 million in selling volume and $2.14 million in buying volume on 49,394 trades. The marginal superiority of buy volume indicated weak buying pressure, which can support a price increase if maintained.
In the future, sustained transfer activity and buy-side pressure could propel the price of BONK higher; however, a shift in buying or additional selling could lead to stagnation or a decline.
