BONK (BONK) Price Shows Signs of Life, Surges 4% to Test Critical Rising Wedge Support Level

With such exciting volatility, the crypto market is still attracted to meme coins. Among them, BONK has become a recognized player among investors and enthusiasts.

BONK price has been on the rise recently with a 4% gain, which could be a pullback attempt to retest the critical rising wedge support level.

This move follows the breakout of the key support level on July 29, with investors wondering whether this is a short-term bounce or the beginning of a larger recovery.

As BONK approaches the rising wedge support level, investors are waiting for a breakout or rejection. If it can successfully surpass this level, it could signal a renewed bullish rally. However, if the move is rejected, there may be a further decline.

Source: Tradingview

Liquidation pool effect

The large reserve of liquidated tokens at $0.00002838 poses both an opportunity and a threat at the same time.

If the BONK price reaches this level, it may lead to further liquidation, which may play a role in pushing its price even higher. However, a large number of stocks in the pool can also create a strong resistance level.

Source: Coinglass

BONK's wavy interest

The token has seen choppy price movement. This was also reflected in the weighted open interest data for the same period. Open interest increased during the recent price increases, indicating more bullish trading and increased optimism from investors.

In fact, there have been cases of sharp declines in prices following a drop in open interest, indicating profit taking or liquidation.

Source: Coinglass

Realistic or not, here is the market cap of BONK in BTC terms

BONK's price movement will be important in the coming days. If the token can capitalize on its recent momentum and successfully liquidate the pool, this could lead to the expected recovery.

But if it fails to break above the important level, this could indicate renewed selling pressure.

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