The cryptocurrency market has been on a bullish streak, with Ethereum leading the charge following the excitement surrounding the potential approval of the first spot Ethereum ETF.
Amid this market rally, Solana-based memecoin BONK has emerged as one of the top performers in the last 24 hours.
TLDR
- BONK, the Solana-based memecoin, has broken through the resistance at $0.00003 amid the recent market rally, signaling a potential for further gains.
- The BONK price has increased by 148% since April, currently trading at $0.0000328, and is targeting $0.000047 and $0.0000712 if the breakout sustains.
- The cryptocurrency market experienced nearly $400 million in liquidations over the past 24 hours, with the majority being from short positions.
- Technical indicators, such as the rising EMAs and ADA slope, suggest that buyers have sufficient momentum to lead a higher rally.
- Ashort-term pullback is expected due to the highly positive cumulative liquidation levels delta, with key support levels at $0.0000301, $0.0000289-$0.0000295, and $0.0000272.
BONK has broken through the resistance at $0.00003, signaling a change in market sentiment and the potential for further gains.
The memecoin entered its current recovery trend in late April, maintaining a price above $0.000013, and has since surged by 148% to trade at $0.0000328.
An analysis of the daily charts reveals that the recovery has developed an inverted head and shoulder pattern, often interpreted as a bottom formation and a precursor for prolonged recovery.
With the recent breakout, BONK is targeting $0.000047 and $0.0000712 if the price sustains above the neckline resistance.
The cryptocurrency market has experienced significant liquidations over the past 24 hours, with nearly $400 million in liquidations, primarily from short positions.
Bitcoin and Ethereum alone accounted for $218 million of the total. The market’s long-short ratio stands at 2.46, indicating a strong inclination towards long positions.
Technical indicators also support the bullish sentiment for BONK. The sharp upswing in daily EMAs (20, 50, 100, and 200) suggests aggressive buying activity among traders, while the rising Average Directional Index (ADI) slope indicates that buyers have sufficient momentum to lead a higher rally.
However, despite the bullish outlook, a short-term pullback is expected due to the highly positive cumulative liquidation levels delta.
Key support levels to watch are $0.0000301, $0.0000289-$0.0000295, and $0.0000272, as these regions have large clusters of liquidation levels and are important based on price action.
BONK’s breakout amid the recent market rally has positioned the memecoin for potential further gains, targeting $0.000047 and $0.0000712.
While technical indicators support the bullish sentiment, traders should be cautious of a possible short-term pullback, given the highly positive cumulative liquidation levels delta.
