BONK Cryptocurrency Plunges 12% amid Liquidity Reversal Concerns - Insights Provided
In the world of cryptocurrencies, memecoins continue to capture the attention of investors. One such memecoin, BONK, has been experiencing a turbulent ride recently. Here's a breakdown of the current situation.
BONK's price action has been bearish, with the coin falling below the significant support level at $0.00002. This drop has been a blow to holder confidence, but there is a potential for a bullish reversal. A nearby liquidity pocket at $0.0000185 could serve as a catalyst for such a reversal, according to analysis. This magnetic zone is the short-term price target after a sweep of the nearby liquidity pocket.
At the time of writing, $0.0000193 serves as a local support for BONK. The drop below the Point of Control, as shown by the Fixed Range Volume Profile tool, took BONK to the Value Area Low at $0.0000193. The Point of Control for BONK is at $0.0000224.
The downtrend in BONK's price is further supported by technical indicators. The Directional Movement Index (DI and ADX) is above 20, signaling a strong downtrend in progress for BONK. Additionally, the A/D indicator for BONK has been making lower highs over the past two weeks, a sign of buyers' weakness.
However, it's important to note that BONK is not an independently created coin. Instead, it's a memecoin managed and significantly invested in by the Nasdaq-listed company Safety Shot, which created BONK Holdings LLC to oversee its digital asset strategy and holdings of BONK tokens. The coin represents a part of Safety Shot’s portfolio.
In terms of trading volume, BONK has experienced a 20% increase in daily trading volume. This increased activity could potentially lead to more price volatility.
As for the memecoin landscape, a comparison of the momentum of Shiba Inu [SHIB] and Pepe [PEPE] was recently published on our website. The report suggested that whale buyers for SHIB and retail for PEPE could drive a breakout past key resistance levels.
In conclusion, BONK's current market status indicates a bearish trend, but the potential for a bullish reversal exists. Investors should closely monitor the coin's price action and technical indicators for any signs of a shift in the market structure.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice.
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