BONK Price Teeters at Major Support

BONK price recorded an 8% jump on Tuesday, witnessing a short relief rally from a recent market sell-off. A sudden surge in buying pressure followed Bitcoin’s sustainability above $50000

The price of BONK experienced a surge of 8% on Tuesday, offering a brief respite from the recent market downturn. This rally followed Bitcoin’s sustained rise above $50000, and the total cryptocurrency market capitalization surged by 8.7% to reach $1.95 Trillion.

Despite this uptick, most major altcoins remained significantly above their recent lows amid persistent bearish market sentiment and fears of a recession.

BONK Price Encounters Crucial Support Level

Over the past three weeks, intense selling pressure has gripped BONK, evident in a series of red candles on the daily chart. This bearish trend saw the asset plummet from $0.000035 to a low of $0.000015 on Monday, registering a loss of 54%.

As recent price corrections unfolded, the BONK coin experienced a substantial decline in open interest since late July. According to data from Coinglass, the OI fell sharply from $13 million to $5.7 million, indicating a loss of 55%. This decline highlights a potential drop in market liquidity and traders’ commitment to BONK.

With today’s market uptick, BONK price recovered to $0.0000196, seeking sustainability above the channel pattern’s support trendline. On the daily time frame chart, the Solana-based meme coin has been riding a steady recovery trend since February 2024, forming two parallel trendlines.

However, derivative market data reveals a negative (OI)-Weighted Funding Rate of -0.028, indicating that short sellers are paying to maintain their positions, which implies their expectation of further price declines.

Additionally, the Average Directional Index (ADX) has surged to 19%, indicating that sellers are emerging as the dominant force in the current market.

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