BONK dropped by 18% before bouncing back up by 16% to $0.000035 in a few hours. A liquidation could signal a rally towards $0.000045, depending on Bitcoin's stability. Is it worth betting on this memecoin ?
While BONK fell 18% from Wednesday’s high, the memecoin immediately rebounded by over 16%. Currently trading at $0.000035, it records a 3% gain for July 24th.
This rebound comes after a liquidation below the bullish trendline, which triggered long position liquidations and forced panic selling among investors. Now, BONK has reclaimed its trendline and could target $0.000045 soon if it maintains above this level.
Indeed, these downside liquidations are typically used by smart money to accumulate before pushing to higher levels. The next resistance levels are at $0.0000375 and $0.000040.
The CMF indicator confirms this potential accumulation with a bullish divergence, signaling buying pressure despite the price drop in recent days. In other words, whales have seen this as a buying opportunity.
Furthermore, as trader ChartFu points out, BONK has successfully held the upper band of its ascending channel on the daily chart. This sign of resilience could transform into an explosive catalyst during Bitcoin’s next rally.
The revenue generated from fees on Bonkfun is also increasing and now exceeds 5x that of Pumpfun. A portion of these fees is used to buy BONK, creating buying pressure and reinforcing this resilience.
In this context, TheUnipcs, known for his legendary long position on BONK, declares that BONK is the “new Hype-Trade.”
In conclusion, only a Bitcoin drop below $114,500 could delay or prevent BONK’s rise at this level. From fundamentals to technical aspects, the asset displays clear bullish signals.
In the short term, BONK could increase by 30% in the coming days and might even reach a $20 billion market cap in the coming months.
To ride the Bonkfun wave, here’s a guide to acquiring the memecoin on Bitget :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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