- BONK recently broke out of an ascending trend channel that has been guiding its price since its inception as a memecoin.
- Despite a liquidity sweep, there is a lack of significant upward momentum, potentially leading to a further drop if buyers do not step in.
The daily chart of Bonk [BONK] shows a clear breakout from an uptrend channel that has been influencing the price action of this meme token since its launch.
This channel, marked by rising resistance and support levels, had previously contained the price with multiple tests and bounces in 2024.
BONK recently slipped below the channel bottom at $0.00000933, causing a liquidity sweep and a weak positive reaction at the end of the daily candle, indicating some initial buying interest.
The lack of strong bullish momentum suggests a potential further drop if buyers do not intervene.
Source: TradingView
The MACD readings show -0.00000214 for the MACD line, -0.00000194 for the signal line, and -0.00000019 for the histogram, indicating bearish momentum. The declining MACD line below the signal line and the decreasing histogram suggest that a period of stabilization may be on the horizon.
The breach below $0.00000933 signified a notable shift, with the price seeing an upward movement post-sweep.
Sustaining a price above this level could signal ongoing buying interest, potentially targeting the former channel support now acting as resistance.
BONK’s Dex trading volumes and transfers
Analysis of BONK’s Dex trading revealed a peak transfer value exceeding $45 million with nearly 150,000 transfers before dropping to $60,000 transfers. Subsequently, transfers increased to $110,000 with 120,000 transfers respectively.
This surge in transfer value and volume may indicate heightened interest and liquidity that could fuel a bullish price rally for BONK. However, it could also signify traders capitulating, considering the overall price decline.
BONK’s DEX Trading data showed a peak of around 90,000 total trades this week, with a selling volume exceeding $4 million and a buying volume of $4 million. Notably, the selling volume slightly outweighed the buying volume.
Source: Solscan
Total trades declined to 40,000, with a selling volume of $1 million and a buying volume of $2 million, indicating more traders buying as the price decreased.
The cumulative figures showed $2.11 million in selling volume and $2.14 million in buying volume across 49,394 trades. The marginal lead in buy volume suggests weak buying pressure, which could support a price increase if sustained.
Continued transfer activity and buy-side pressure could potentially drive BONK’s price higher in the future. However, any shift in buying behavior or increased selling could result in price stagnation or decline.