Popular Solana-based meme coin Bonk [BONK] appeared poised for a massive upside move as it approached a bullish breakout.
Meanwhile, the top 100 wallet addresses and whales continued to accumulate the token, suggesting that large players are preparing for BONK’s potential rally.
At press time, BONK jumped over 4.5% in the past 24 hours, trading at $0.00000594. Alongside the price increase, the memecoin’s trading volume climbed more than 19% to $60.61 million during the same period.
This surge in trading volume, combined with rising prices, indicated that market participants were showing strong interest in the current trend, increasing the likelihood of a continued move upward.
Whale and top wallet holdings continue to rise
Data from the analytics platform Nansen revealed that BONK’s top 100 wallet addresses and whales have shown strong interest in the memecoin.
Over the past seven trading days, the top 100 BONK wallet addresses have increased their holdings by 0.63%, while whale holdings have jumped by 6.07% during the same period.
This growing interest from major crypto players suggests that large investors may be preparing for BONK’s next leg up.
BONK: Major levels to watch
Looking at BONK’s daily chart, AMBCrypto found that the memecoin had formed a bullish falling wedge pattern and was on the verge of a breakout.
Historically, such patterns often lead to a strong upside rally once the breakout is confirmed with a candle closing above the pattern.
Based on the current price action, if BONK’s upside move continues and it closes a daily candle above the $0.0000061 level, it could see a price jump of over 22%, potentially reaching $0.00000745.
However, if the price fails to break the pattern, it could continue to move sideways.
As of now, the Average Directional Index (ADX), an indicator that measures trend strength, stands at 15.43, below the key threshold of 25, indicating a weak directional trend for the memecoin.
BONK: Liquidation levels suggest...
In addition to the price action, data from the derivatives analytics platform CoinGlass suggests that traders were also following the market trend by betting on long-leveraged positions.
According to the BONK exchange liquidation map, $0.0000055 on the lower side and $0.00000626 on the upper side are the major liquidation levels where traders are currently overleveraged.
Based on the current trend, if the memecoin continues its upside move and crosses the $0.00000626 level, approximately $230.76K worth of short positions built over the past seven days could be liquidated.
On the other hand, if the trend shifts and the price declines below $0.0000055, nearly $284.43K worth of long-leveraged positions could be liquidated.
This data shows that bets on the long side are currently outperforming traders who are betting on short positions.
Final Summary
- BONK has formed a bullish falling wedge pattern, and a successful breakout could lead to a massive 22% upside move.
- The top 100 wallet addresses and crypto whales have shown strong interest in the memecoin.
