BONK (BONK), the Solana-based memecoin, has been defending a crucial support level throughout October, raising hopes for an upside rally. Following an aggressive September rally with nearly 65% gains, BONK experienced a brief pullback. However, the token has managed to stay above the $0.000022 mark—an important support zone from Q2 and Q3.
With bulls guarding this key level, traders are speculating whether BONK can deliver another profitable surge. The daily charts hint at a potential rebound toward the immediate resistance at $0.000028, a target that could bring 25% gains. The question now is: Will BONK capitalize on this momentum?
Technical Indicators Signal Bullish Reversal
Several technical indicators suggest a bullish reversal could be on the horizon. The stochastic RSI, a momentum oscillator, has rebounded from the oversold region, hinting at renewed buying pressure. Meanwhile, the regular RSI remains above the neutral 50 level, supporting the notion that demand is holding steady.
If BONK continues to defend the $0.000022 support zone, traders could potentially ride the wave toward the $0.000028 mark, delivering a solid risk-reward ratio of 2.4. Beyond this, if the recovery extends to the next resistance at $0.000034, a 54% rally may be achievable.
Futures Market Backs Bulls
The futures market provides further evidence of bullish sentiment. Binance’s Top Trader Long/Short Ratio shows that 68% of traders are betting on a BONK upswing. This strong confidence from “smart money” reflects growing optimism about the memecoin’s short-term prospects.
Moreover, the liquidation heatmap highlights $0.000022 as a critical liquidity zone, where a large build-up of leveraged long positions has formed. This reinforces the importance of the support level, as a potential retracement to this zone could trigger renewed buying activity.
Risk and Reward: What’s Next for BONK?
For now, BONK offers an attractive setup for traders looking to go long, with a favorable risk-reward profile if the price holds above $0.000022. However, the bullish outlook could quickly reverse if BONK drops below this level, opening the door for a potential decline to $0.000015.
Also Read: BONK Jumps 33% In A Month As Bitcoin Hits $66K – Can It Break $0.00003?
In summary, BONK’s recent price action suggests that bulls are not ready to back down just yet. If the memecoin holds its ground and demand picks up, a strong rally could be on the cards. But traders should remain cautious—any slip below $0.000022 could invalidate the bullish thesis and trigger downside risks.
With traders keeping a close watch on key levels, October promises to be an exciting month for BONK holders. Will the memecoin deliver another breakout, or will it succumb to selling pressure? Stay tuned.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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