Over the last 24 hours, there has been a noticeable increase in bullish sentiment surrounding Bonk [BONK], marked by a 7.37% surge that pushed its price to $0.00001851.
This positive movement follows a series of market downturns, with losses of 28.79% in the past week and 46.55% over the last month.
An analysis suggests that the ongoing bullish trend might potentially erase the accumulated losses from the past month and help BONK recover its position.
Bearish Sentiment from OKX and Traders
There has been a surge in buying interest among derivative traders, particularly those on OKX, leading the current buying activity.
The Long/Short Ratio, a metric comparing long contracts (buyers) to short contracts (sellers), has surpassed 1, indicating a predominance of buyers in the market.
Coinglass’ Long/Short Ratio data for OKX traders reflects a bullish sentiment, standing at 1.91, while the overall market ratio leans towards bullishness at 1.0396.
The Open Interest Weighted Funding Rate, which merges Funding Rate and Open Interest, has turned positive, currently at 0.0051%, following a prolonged period of bearishness.
This shift implies that long contracts now hold more weight alongside an increased number of long traders in the market.
Analysis from CryptoCrypto hints at an impending major market rally for BONK.
Emergence of Bullish Formation
The analysis of BONK’s chart reveals a bullish formation where the asset is navigating within a descending price channel, with prices moving within distinct channels, trending downward.
This channel aligns with crucial support levels at $0.00001862 and $0.00001582. If the current support at $0.00001862 holds, BONK could potentially witness a 192% surge, reaching $0.00005444.
In the event of a sentiment shift leading to a decline, BONK would retreat to the lower support level at 0.00001582, triggering a potential rebound or further decline if unsuccessful.
Possibility of Continued Decline?
Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) exhibit bearish signals alongside an imminent rally potential.
MACD, utilizing long and short-term moving averages for market direction, currently indicates a bearish market trend, with both the blue MACD line and the signal line showing a downward trend in the negative territory.
This scenario hints at a potential further decline for BONK, possibly towards the lower support level at 0.00001582.
Conversely, the RSI has dipped into the oversold region below 30, with the current reading at 29.55, indicating potential exhaustion among sellers and a probable rebound in the near term.