BONK Drops 8% in 24 Hours: Discover This Key Price Level to Stop Further Declines!

Bonk [BONK] has faced a significant decline, dropping 8.67% recently, which adds to its losses over the week despite a strong monthly rise of 41%. This stark contrast raises questions about its future performance.

Currently, BONK is nearing a crucial demand zone on the chart, an area where many buy orders sit. This zone ranges from $0.00001546 to $0.00001405. If BONK’s price reaches this level with enough buying pressure, it could trigger a price increase. However, if it fails to hold, further declines are likely.

Technical analysis suggests that should the drop continue, support levels may be found at $0.00001178, $0.00001043, and $0.00000888. Most market indicators lean toward bearish sentiment at this time.

A look at the Liquidation Heatmap shows BONK is near tight liquidity clusters, specifically between $0.000016 and $0.00001448. This placement could make it susceptible to further downturns, as indicated by current metrics.

Market momentum remains bearish. The Taker Buy/Sell Ratio, which reflects trading volumes of long versus short positions, is 0.8457. This means 54.18% of traders are shorting the asset, signaling a lack of confidence in an immediate upswing.

Interestingly, liquidation data highlights a severe imbalance. Recently, around $205,000 in long positions were liquidated, compared to only $1,990 worth of short positions. This suggests many long traders were pushed out, a common sign in a bearish market.

However, there’s still hope for BONK. Spot market traders are actively buying the asset, with daily purchases reaching $2.55 million—$18.63 million over the last week alone. This is the highest weekly purchase since late January.

If this buying trend continues, especially while BONK approaches the demand zone, there might be enough momentum to catalyze a rebound. The next few days will be crucial for BONK as it navigates these dynamics.

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