BONK, the well-known memecoin on the Solana blockchain, is on the brink of experiencing a notable increase in its price, thanks to its positive on-chain indicators and the possibility of a breakout. Remarkably, even amidst the prevailing bearish market sentiment, BONK has managed to surpass major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Performance of BONK’s Price
Currently, BONK is trading close to the $0.0000161 mark, showing an increase of more than 2.5% in the past 24 hours. Concurrently, its trading volume surged by 46% during the same period, indicating heightened trader participation.
Analysis of Technical Aspects and Future Levels
An examination of BONK’s charts indicates that the coin is hovering near the critical support level of $0.0000155 and is trading below the 200-day Exponential Moving Average (EMA) on the daily chart, signaling a downward trend.
Nonetheless, there is potential for a positive movement. In the four-hour chart, BONK appears to be on the cusp of breaking out from a descending trendline. If it manages to breach this line and close a candle above $0.0000165, there is a strong likelihood of a 30% price surge to $0.000021 in the upcoming days.
The Relative Strength Index (RSI) for BONK also supports this optimistic scenario by indicating oversold conditions, hinting at a potential bullish reversal.
However, the validity of this bullish outlook hinges on BONK’s ability to close a candle above the $0.0000165 level. Conversely, failing to surpass this level and dropping below $0.0000152 could lead to a bearish trend, potentially resulting in a 12% decline to $0.0000134.
On-chain Indicators Point to a Bullish Sentiment
According to Coinglass’s data, the long/short ratio for BONK shows a prevailing bullish sentiment among traders, with a current value of 1.0264 (values above 1 indicate bullish sentiment).
Furthermore, BONK’s Futures Open Interest has been steadily increasing, having surged by 11% in the last 24 hours.
Rising Open Interest along with a long/short ratio exceeding 1 serve as potential buying indicators, with traders often leveraging this combination to make informed trade decisions in either direction.
As of now, 51.05% of leading traders have taken long positions, while 48.98% have opted for short positions.