BONK Price Prediction: BONK Consolidates in a Pennant, Will It Break Out or See a Pullback?

BONK's price has been consolidating since 14 July, while obeying a notable converging bullish pattern. On the charts, the pennant was nearing a breakout phase

BONK’s price has been consolidating within a converging bullish pattern for the past two weeks. The pennant formation on the charts was nearing a breakout phase, with the price momentum confluencing at a key resistance level of $0.00002940.

At press time, the memecoin was valued at $0.00002862 after a 4% hike in 24 hours. Its market capitalization surged by 5% to $1.97 billion over the aforementioned period.

BONK’s price seemed to be in a “wait and see” situation, hovering just below a key resistance level of $0.00002940. This level has been tested multiple times, highlighting its importance for BONK’s next move.

Investors are keeping a close watch on this resistance, as a successful breakout could lead to a potential surge in BONK’s price. However, failure to break through could result in a pullback.

Social Volume decreasing, Whale Activity increasing

Data from Coinglass showed a decreasing trend in social volume for BONK. This observation aligns with our previous analysis, where we noted that a decrease in social volume was observed during its recent short-term correction. Prior to the recent 10% rally, the memecoin’s social volume also saw a decline.

Meanwhile, BONK’s whale activity registered a hike. The percentage of supply by big players with more than $5 million stood at 52% at press time. This may be a sign of a potentially significant move, especially considering that whales have a lot of influence on the market’s direction.

Liquidations hint at a balanced market

Data from Coinglass revealed moderate liquidation levels for BONK’s price. This suggests that the market is balanced, without excessive leverage. However, it’s important to note that these levels can change quickly, especially in the highly volatile cryptocurrency market.

Another perspective on the matter

An analysis of liquidation data by AMBCrypto reveals that BONK’s long/short ratio has been fluctuating from long to short. These fluctuations in long and short positions could be a sign that there is market uncertainty.

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