BONK, the popular memecoin, has been trading within a specific price range for the past month. While this has provided opportunities for traders, the lack of significant accumulation and bearish momentum suggest a cautious approach.
Range-Bound Trading and Bearish Momentum
The recent price action of BONK has been characterized by range-bound trading, meaning the price has fluctuated between certain high and low levels. Despite this, there hasn’t been a steady increase in BONK accumulation, indicating that investors are hesitant to buy into the coin at current prices.
Furthermore, the momentum of BONK has been bearish, suggesting that sellers are currently dominating the market. This bearish trend is likely to continue, and buyers may need to wait for a deeper dip before considering going long.
Market Sentiment and Lack of Demand
The wider market sentiment has also played a role in BONK’s performance. Fearful market conditions have weakened buyers, and the lack of demand has hindered BONK’s ability to break out of its trading range.
While there are still opportunities to profit from BONK, traders will need to be patient. September is expected to be a volatile month with numerous news events that could significantly impact the coin’s price.
Technical Analysis and Support Levels
From a technical analysis perspective, BONK’s range is likely to continue, with the low end of the range at $0.0000162 being a potential short-term price target. However, there is also a local support level at $0.0000174.
The 12-hour chart shows bearish momentum based on the Relative Strength Index (RSI), and the On-Balance Volume (OBV) suggests that sellers are still in control. Additionally, the Fibonacci retracement level at $0.0000188 is a key level to watch.
Long-Term Outlook and Liquidation Heatmap
While the short-term outlook for BONK is cautious, investors with a longer time horizon may remain optimistic about its future. The liquidation heatmap analysis suggests that there are strong support levels at $0.0000146-$0.0000161 and $0.0000237-$0.0000253, which could provide buying opportunities.
In conclusion, BONK’s price is likely to remain range-bound in the near term, with limited upside potential. However, for investors with a long-term perspective, the current price levels may present attractive buying opportunities, especially if market sentiment improves and demand for BONK increases.