- BONK saw signs of a bullish reversal at a key support level
- Metric underlined growing interest and potential bullish momentum on the charts
BONK’s price has been a rollercoaster ride lately, with significant highs and lows. In fact, the altcoin’s price has depreciated by 47% since 28 May. At the time of writing, it was close to a crucial support level at around $0.00002260, having retested it several times in the last 3 months.
The price seemed to be obeying an ascending trendline support too, one that confluences with $0.00002206. It would thus seem that BONK may have been accumulating bullish momentum, probably to the next resistance level at $0.00002940, before breaking free as it accumulates enough momentum to breach its resistance level.
At the time of writing, BONK’s market cap had a valuation of $297 million, with the altcoin losing over 3% of its value in the last 24 hours alone.
![BONKUSD 2024 06 15 11 11 49 2dd83](https://ambcrypto.com/wp-content/uploads/2024/06/BONKUSD_2024-06-15_11-11-49_2dd83.png)
Source: BONK/USD, TradingView
On the chart, the stochastic RSI (4.90) indicated that BONK was in an oversold zone, suggesting a buying opportunity after a likely reversal.
Furthermore, the moving average convergence divergence – With a close line at -0.00000009 – pointed to a potential convergence, one hinting at a shift in bearish momentum to bullish momentum.
What tale do the metrics tell?
AMBCrypto’s analysis of Santiment’s data revealed some notable trends. For example – The percentage of stablecoin total supply held by whales with more than $5 million registered an ascending trend. This trend is a sign of reinforced confidence among large holders, which can precede impending price movements.
As BONK whales accumulate, the market’s buying pressure could increase, pushing the prices higher in the process.
![Bonk BONK 11.12.54 15 Jun 2024](https://ambcrypto.com/wp-content/uploads/2024/06/Bonk-BONK-11.12.54-15-Jun-2024.png)
![Bonk BONK 11.12.54 15 Jun 2024](https://ambcrypto.com/wp-content/uploads/2024/06/Bonk-BONK-11.12.54-15-Jun-2024.png)
Source: Santiment
What does liquidity add to the support level?
After a look at the price action and Santiment’s inferences pointed to a potential price hike, AMBCrypto assessed the Liquidity map. The liquidity map indicated areas of high leverage and liquidity points.
The map indicated significant activity around $0.0000238 and $0.0000247, which could act as price magnets for the cryptocurrency and its traders.
![BONK liquadation map](https://ambcrypto.com/wp-content/uploads/2024/06/BONK-liquadation-map.jpg)
![BONK liquadation map](https://ambcrypto.com/wp-content/uploads/2024/06/BONK-liquadation-map.jpg)
Source: Coinglass
Is it time to buy the dip?
With the price action and on-chain market sentiments suggesting that a bullish reversal may be on the horizon, this could be the best time to buy the dip. However, if the price breaks out of the key support level at $0.00002260, BONK’s price may fall even further.