BONK Shows Resilience After Recent Price Weakness, Setting the Stage for Another Leg Higher

BONK has shown resilience after recent price weakness, with technical patterns suggesting the Solana-based memecoin could be preparing for another leg higher.

Good news, Bonk fans – the Solana-based memecoin is showing remarkable resilience after recent price weakness. Technical patterns suggest the token could be setting up for another leg higher from here.

Bonk Price Action

The token trades at $0.000020 at the time of writing, gaining 3.65% over the past 24 hours. This follows a 10% decline over the previous seven days.

Bonk price action has remained contained within an ascending channel on daily charts. The upper trendline acts as resistance, while the lower boundary provides support.

Crucial support also arrives at the 200-day exponential moving average, which comes into play around current levels. This long-term indicator acted as resistance in April before converting to support in May.

Bulls have kept price above both short-term and long-term moving averages. The 50-day and 100-day moving averages provide additional support layers.

Technical Indicators Signal Buying Interest

The Money Flow Index has climbed to 66.79, showcasing strong capital inflows. This momentum oscillator measures the flow of money into and out of the cryptocurrency.

Higher MFI readings are typically seen with increased buying pressure. The strong reading suggests accumulation despite recent price volatility.

Chaikin Money Flow has also moved above the zero line on shorter timeframes. This indicator, which ranges from -1 to 1, helps identify periods of accumulation (positive values) and distribution (negative values).

Relative Strength Index (RSI) has remained above the midpoint since April, indicating demand has remained on average higher than supply throughout the recent rally phase.

What To Expect From Bonk Next

Immediate resistance is seen at $0.000024, which coincides with the recent local high. A break above this level could open the door to higher targets.

Next resistance is anticipated at $0.000028, which aligns with the 0.50 Fibonacci retracement level from the March swing low to May high. This technical level is often encountered as a barrier during trending moves.

Ultimately, bulls are aiming for the $0.000033-$0.000035 zone, with the 0.62 retracement level at $0.000032 and the 0.79 retracement at $0.000035. Reaching $0.000035 would mark a 77% gain from current prices.

Support levels are critical for maintaining the bullish structure. The $0.000018-$00.000020 zone provides multiple technical confluences.

This support area aligns with the 200-day moving average and the lower boundary of the ascending channel. It also coincides with areas of high liquidity concentration, which could provide an cushion against sudden selling pressure.

Open interest in Bonk futures has been increasing rapidly, rising from $8.5 million in mid-May to over $12 million. This surge in speculative positioning signals growing trader interest in the memecoin.

The derivatives market activity could provide additional momentum if price breaks key resistance levels. However, it also contributes to higher levels of price volatility.

Spot market demand has been recovering gradually since mid-May, though the pace is measured. Cumulative volume delta shows steady but not explosive buying activity.

A decisive close below $0.000018 would invalidate the current bullish outlook and potentially trigger further selling pressure as bears regain control.