BONK, the fun dog-themed crypto, may be getting ready for a comeback

BONK, the fun dog-themed crypto, may be getting ready for a comeback. Traders are seeing signs that the price could go up soon. BONK broke out of a falling trendline.

Introduction

BONK, the fun dog-themed crypto, may be setting itself up for a comeback after a period of bearish activity. As traders examine the latest developments, they’re spotting technicalities that could favor an upward trajectory for BONK.

The price of BONK broke the falling trend line, which had been guiding the token downward. Breaking this trend line is a noteworthy occurrence, as it could indicate a reversal of the bearish momentum that had been affecting the token.

The TD Sequential Indicator, a tool used to anticipate potential shifts in price direction, has flashed a buy signal. This follows a period of bearish activity in the market.

The indicator had previously been signaling sell signals, suggesting that traders should prepare for further downward movement. However, the latest signal from the TD Sequential Indicator suggests that the downtrend may be coming to an end, and an uptrend might commence.

This signal is closely observed by traders, as it could be an early indication of a shift in favor of the bulls.

At the time of writing, BONK is trading at $0.00001234, reflecting a 5% increase over the past 24 hours. This move has brought the token above the $0.00001200 level, a threshold closely watched by traders due to the presence of substantial liquidity.

A glance at the chart reveals that BONK has support at $0.00000954, a level where sellers may face difficulties continuing their efforts to push the price lower.

On the other hand, at $0.00001235, traders can observe an area of resistance, where buyers may struggle to maintain upward momentum and push the price higher.

The Relative Strength Index (RSI) stands at 48.46, indicating a neutral reading, neither oversold nor overbought, leaving room for further movement in either direction.

Liquidation Heatmap Shows Potential Shift In Favor Of Bulls

Examining the liquidation heatmap, a visualization tool used to identify levels where traders have placed orders en masse for liquidation in the event of price reaching those zones, we can observe a cluster of traders at the $0.00001200 zone.

Should the price rise above this level, it could trigger a rapid response from these traders, pushing the token even higher.

Moreover, the token has already broken through the next resistance zone at $0.00001150, setting the stage for a potential continuation of the upward trend.

Open Interest Rises As More Traders Join In On Bonk

In other news, BONK’s Open Interest has risen by more than 12%, indicating that more traders are now betting on the price of BONK. At present, there is $12.79 million in Open Interest on the token.

An increase in Open Interest can be driven by factors such as traders opening new positions or increasing the size of their existing ones. In crypto markets, a surge in Open Interest is often associated with rising interest in a particular asset.

However, it’s worth noting that greater participation in the market can also lead to more volatile price movements as traders react to shifting market conditions, which could result in faster price fluctuations, either upward or downward.

Examining the funding rate, which signifies whether more traders are placing bets on the price to go up (positive funding rate) or down (negative funding rate), we observe a rate of -0.0017%, suggesting a slight preference for bearish bets.

Despite this, the funding rate remains minimal, indicating a balanced outlook among traders and a lack of significant pressure to push the price in any particular direction at present.