Is BONK’s 12% Plunge the Calm Before a Massive Liquidity Storm? What Savvy Traders Are Betting On Next!
When you peek under the hood of BONK’s latest market action, you can’t help but feel a tug-of-war between despair and hope — it’s like watching a drama unfold in slow motion. The meme coin saw a hefty 20% jump in daily trading volume, yet it’s been dancing on the edge, shedding nearly 12% of its value since early September and sliding past a crucial support level at $0.0000226. Traders are left wondering: is this the beginning of a deeper plunge or a clever setup for a bullish comeback? The charts tell a tale of bearish momentum, but lurking nearby is a liquidity pocket that might just flip the coin back in buyers’ favor. Meanwhile, memecoin heavyweights Shiba Inu and Pepe are flexing their strength, stirring further excitement in the space. If you’ve ever thought that market trends are predictable, BONK’s current saga might just challenge that belief — can it really bounce back after such a tumble? Dive into the nitty-gritty of volume profiles, directional indicators, and heatmaps that shed light on BONK’s precarious position and the potential pivots ahead. Curious to see if this memecoin will surprise us all?
Key Takeaways
BONK had a bearish market structure on the 1-day chart, but a bullish reversal from its nearby liquidity pocket might be a possibility traders should look out for.
BONK registered a 20% hike in daily trading volume, according to CoinMarketCap. That’s not all though as the memecoin has shed nearly 12% of its value since 01 September, falling below a key support level at $0.0000226.
In a recent report, AMBCrypto also compared the momentum of other popular memecoins, Shiba Inu [SHIB] and Pepe [PEPE]. Whale buyers for SHIB and retail for PEPE could drive a breakout past key resistance levels.
In comparison, BONK’s fall below $0.00002 has been a blow to holder confidence. Hence, more losses may be likely to follow.
Volume Profile highlights BONK trend
Source: BONK/USDT on TradingView
The Fixed Range Volume Profile tool was plotted from the start of the rally in late June to present day. It showed that the Point of Control (red) was at $0.0000224. This was close to the $0.0000226-support level, which was also a key Fibonacci retracement level.
BONK’s drop below the Point of Control took it to the Value Area Low (dotted blue) at $0.0000193. At the time of writing, this level served as a local support. However, the price action outlined a bearish market structure.
The Directional Movement Index agreed with both the -DI (red) and the ADX (yellow) above 20 to signal a strong downtrend in progress. In fact, the A/D indicator has been making lower highs over the past two weeks – A sign of buyers’ weakness.
Source: Coinglass
Finally, the 3-month liquidation heatmap revealed that there were two magnetic zones of interest near BONK’s market price. The closest one was at $0.0000185. Its density and proximity meant it was the short-term price target.
After a sweep of this liquidity pocket, a bullish reversal towards $0.0000235 would become likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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