Bonk (BONK) has continued to trade within a price range that has existed for six weeks. Visiting lower levels may have also presented a good risk-reward buying opportunity for investors. Recent analyses indicated that the outlook for the meme coin was not very good. The indicators owned by BONK were also in a bearish view. Despite the indicators, the price movements specific to meme coins indicated that a reversal was within the realm of possibility.
Opportunities for Buying BONK
As of the time of writing, BONK was moving within a bearish market structure on the 12-hour chart. Over the past six weeks, BONK has moved within a price range from $0.00000944 to $0.0000171.
The RSI continued to stay below the neutral 50 and had maintained this view since mid-January. The appearance of the RSI reflected a bearish momentum while also shedding light on an ongoing downtrend, which was confirmed by the market structure.
On the OBV side, there was a slight decline over ten days due to increasing selling volume. The resistance in the $0.0000126 region did not give way to the bulls on January 28. As of the time of writing, BONK was trading near the lowest levels of the range.
While all these price movements were happening, investors wanting to buy should be careful against losses that could occur in liquidity zones below the lowest levels of the range and accordingly consider their risk and stop-loss orders.
A possible drop below the $0.0000075 level could reveal a strong downtrend is likely and show investors that the next target is the support found at the $0.0000048 support level.
The Future of BONK
Data from Coinglass about the futures market for BONK also pointed to different aspects in the analyses. Since mid-December, a continuous decline in Open Interest (OI) has been observed. This decrease in OI did not go unnoticed by investors.
While the Funding Rate on Binance remained somewhat positive, it was not sufficient for a recovery that could impact the price. Alongside the rising OI from the OBV side, an increase in buying volume could potentially bring BONK back to the highest levels of the range.
BONK, as of the time of writing, was trading at $0.000099217 with a neutral appearance.
