Key Takeaways
Should investors be bullish on BONK?
The Dogecoin ETF news and the leading memecoin’s relative strength could flow into other cryptos such as bONK too.
Can BONK see another price dip this week?
The liquidation heatmap revealed that a price dip to $0.0000216 may be a possibility in the coming days.
Rex-Osprey’s BONK ETF has been delayed by a week, alongside several others such as Dogecoin’s [DOGE]. The bullish sentiment around the memecoin sector was fueled largely by the hype around Dogecoin.
The leading memecoin has survived multiple cycles and remains the market’s biggest, most popular token. Back in 2021, it exploded in value in the final months of Bitcoin’s cycle, paving the way for other cryptos to follow too.
Hence, hype around Dogecoin could drip into BONK and other memes, reinforcing their bullish sentiment. News that Dogecoin gave a 35% monthly ROI compared to Ethereum’s [ETH] 6.18% may be a sign of relative strength too.
BONK approaches key demand zone
Source: BONK/USDT on TradingView
Based on the rally in late June, a set of Fibonacci retracement levels was plotted. The Fixed Range Volume Profile tool was also used for the price action since this rally began.
They showed that the 61.8% and 78.6% retracement levels were at $0.0000177 and $0.0000226. The Value Area Low (dotted blue) was at $0.0000193, and the Point of Control (red) was also at $0.0000226.
Together, the two tools highlighted the importance of the $0.0000177-$0.0000226 zone, with particular emphasis on the latter level as a support. At the time of writing, BONK was testing this support level.
The internal market structure had turned bullish too, and the RSI was above neutral 50 – Evidence of short-term bullish momentum. The OBV’s steady ascent reflected buying pressure as well.
Source: Coinglass
Finally, the 2-week look-back period liquidations heatmap showed that BONK saw a bullish reaction from the magnetic zone at $0.0000223, just below the Fib retracement level. This magnetic zone was not wholly swept.
Therefore, another short-term price dip may be possible. Traders could be on the lookout to buy this dip, but should also assess market-wide sentiment. Especially Bitcoin’s [BTC].
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
