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- Currently, BONK trades within a double bullish pattern, indicating accumulation and the potential to achieve a higher price level.
- However, on-chain sentiment remains mixed. While some metrics highlight a bearish presence, others suggest increased liquidity, leaving the market divided.
Over the past month, Bonk [BONK] has struggled, dipping by 25.29% and failing to deliver gains for investors. Despite this, recent price action shows a glimmer of recovery, with the asset gaining 0.16% in the last 24 hours.
AMBCrypto has identified strong bullish signals supporting BONK’s recent minor uptick. However, the sustainability of BONK’s rally remains uncertain due to misaligned trader sentiment, which poses a potential obstacle.
A double bullish pattern in the accumulation zone
At press time, BONK was trading within two bullish patterns: a larger descending channel and a consolidation phase within the channel, showing ongoing accumulation.
The descending channel typically indicates lower lows as buyers bid at decreasing prices before the market rallies. Within this structure, the consolidation phase, marked by a rectangular box, reflects price distribution between defined support and resistance levels.
A breakout from this consolidation phase and a breach of the descending channel’s resistance line could potentially lead BONK to a significant rally, reaching $0.00005666—a 78.65% gain from its current level.
Source: TradingView
Technical indicators support this bullish outlook. The Relative Strength Index (RSI), a measure of price momentum, has bounced perfectly off the neutral line at 50 and stood at 53.89, suggesting upward momentum.
When the RSI stays above 50 and trends higher, as it does for BONK, the likelihood of continued price gains increases.
Source: TradingView
The Aroon indicator further confirms bullish momentum. The Aroon-Up (orange) is at 64.29%, outpacing the Aroon-Down (blue) at 21.43%. This indicates strong buying activity and suggests that BONK remains in an accumulation phase.
The Aroon indicator tracks the strength and direction of trends by measuring the time since recent price highs and lows.
However, AMBCrypto has observed some market hesitancy, with certain cohorts showing signs of selling pressure.
Potential delay in BONK’s upswing
The memecoin may experience a pause or slowdown before continuing its upward trajectory.
At the time of writing, Open Interest (OI) has declined by 4.97% over the past 24 hours, dropping to $12.15 million. A decrease in OI typically signals bearish sentiment, as it suggests reduced trader participation or exiting positions.
Additionally, Exchange Netflow data indicates unfavorable trends for BONK. There has been a significant inflow of funds into exchanges, totaling $7.85 million in the past week.
Source: Coinglass
This movement reflects increased selling pressure as more market participants transfer assets to exchanges.
If these trends persist, BONK risks remaining in its consolidation phase for a longer period before breaking out to the upside. However, if buyers step in and accumulate the asset, the memecoin could resume its rally sooner.
TVL growth for BONK
The Total Value Locked (TVL) of Bonk Staked SOL (bonkSOL), a liquid staking token (LST) tied to BONK validators, has seen a significant surge.
Source: DeFiLlama
Read Bonk’s [BONK] Price Prediction 2024-25
As of now, the TVL stands at $23.59 million, marking its highest level since the 21st of December.
This notable liquidity inflow into the memecoin’s validator pool is expected to have a positive ripple effect on BONK itself.
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