- The bulls of Memecoin seemed to have a slight advantage over the bears, as indicated by its indicators
- The liquidation heatmap pointed out the local highs as a short-term target
Currently, Bonk [BONK] was on the brink of turning the $0.0000338 level into support. Nevertheless, the bulls encountered some resistance at the 61.8% retracement level in the recent hours. The technical indicators suggested that the bulls had a slight upper hand.
With Bitcoin’s [BTC] positive performance leading up to the U.S. presidential inauguration on January 20, there might be some bullish prospects for the memecoin. However, BONK traders should be cautious of a potential failed breakout if BTC’s momentum shifts.
Is it time for another BONK rejection?
Source: BONK/USDT on TradingView
The daily chart displayed a bearish structure after showcasing a lower low in the previous week. The price was currently trading just below the 61.8% Fibonacci retracement level at $0.0000338. The RSI crossed above the neutral 50 mark, indicating a shift in momentum favoring the buyers.
The OBV had been climbing over the past month but failed to surpass a local high. This was another bullish sign, hinting at some remaining strength in BONK buyers despite losses in the memecoin sector over the last six weeks.
The $0.000037 resistance level stands out as crucial for the bulls
Source: BONK/USDT on TradingView
The H4 chart highlighted a fair value gap (white box) just above $0.00003, which had served as a significant support level in the latter half of December.
Therefore, a retest of the FVG or the $0.00003 level could present an opportunity for buyers.
Source: Coinglass
The 1-month liquidation heatmap indicated a cluster of liquidation levels around $0.0000366-$0.0000374, aligning with the local highs that BONK reached at $0.000036 in early January.
Read Bonk’s [BONK] Price Prediction 2025-26
Hence, in the upcoming days, it is possible that BONK will trend towards $0.000036-$0.0000374, providing traders with profit-taking opportunities. Swing traders, on the other hand, can consider long positions upon a bullish breakout in the daily market structure and the OBV surpassing the local highs.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other forms of advice