Memecoin BONK’s price falls by 12% as traders eye liquidity reversal – Details!
Key Takeaways
BONK had a bearish market construction on the 1-day chart, however a bullish reversal from its close by liquidity pocket is perhaps a risk merchants ought to look out for.
BONK registered a 20% hike in day by day buying and selling quantity, based on CoinMarketCap. That’s not all although because the memecoin has shed almost 12% of its worth since 01 September, falling beneath a key assist stage at $0.0000226.
In a current report, AMBCrypto additionally in contrast the momentum of different standard memecoins, Shiba Inu [SHIB] and Pepe [PEPE]. Whale consumers for SHIB and retail for PEPE may drive a breakout previous key resistance ranges.
As compared, BONK’s fall beneath $0.00002 has been a blow to holder confidence. Therefore, extra losses could also be prone to observe.
Quantity Profile highlights BONK development
Supply: BONK/USDT on TradingView
The Mounted Vary Quantity Profile device was plotted from the beginning of the rally in late June to current day. It confirmed that the Level of Management (purple) was at $0.0000224. This was near the $0.0000226-support stage, which was additionally a key Fibonacci retracement stage.
BONK’s drop beneath the Level of Management took it to the Worth Space Low (dotted blue) at $0.0000193. On the time of writing, this stage served as a neighborhood assist. Nevertheless, the value motion outlined a bearish market construction.
The Directional Motion Index agreed with each the -DI (purple) and the ADX (yellow) above 20 to sign a robust downtrend in progress. The truth is, the A/D indicator has been making decrease highs over the previous two weeks – An indication of consumers’ weak spot.
Lastly, the 3-month liquidation heatmap revealed that there have been two magnetic zones of curiosity close to BONK’s market value. The closest one was at $0.0000185. Its density and proximity meant it was the short-term value goal.
After a sweep of this liquidity pocket, a bullish reversal in direction of $0.0000235 would develop into probably.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
