- BONK has hit a familiar long-term snag.
- Demand was stable in both spot and futures markets.
Memecoin has attracted significant market attention after Bitcoin (BTC) surged to $60,000 in the past 48 hours. In fact, on Saturday, the Memecoin category rose 6%, according to Coinglass, ranking second in terms of Open Interest (OI). This could help the segment, which includes Bonk (BONK).
However, other memecoins such as dogwifhat (WIF) and Pepe (PEPE) have seen higher volumes than BONK, which could delay a strong push for BONK, especially since it has hit a long-term hurdle on the charts.
Can BONK overcome this obstacle?
Source: BONK/USDT, TradingView
After the Q2 BONK downtrend, memecoin has struggled to break above key long-term trendline support. Attempted recoveries in July and August have been reversed at resistance levels. At the time of writing, the September relief rally has hit another hurdle at $0.000018.
The uncertainty of BONK’s recovery is further confirmed by the overbought condition flashing on the Stochastic RSI (Relative Strength Index) and the neutral reading of the RSI. If BTC holds below $60,000, this obstacle could trigger another BONK price rejection.
If so, a price rejection at the hurdle could drop the price to the $0.000015 support line (marked in turquoise).
However, if BONK breaks the trendline resistance and surges into the supply zone above $0.000020, it could potentially gain 16%.
BONK Demand Stagnation
Source: Coinglass
BONK’s OI fell from its July high of $13 million and hovered below $10 million in August and September, indicating a decline in interest, followed by stagnant demand in the futures market.
In addition to the decline in demand, Mimecoin saw massive outflows from the spot market in August and September, which further reinforced investors’ risk-averse approach and the lack of strong demand from spot buyers.
Over the past seven trading days, Mimecoin has seen approximately $8 million in outflows from centralized exchanges.
Source: Coinglass
Reduced demand could weigh on BONK and make it more difficult to achieve a long-term bull market.
If so, the immediate support area of $0.000015 could provide a discounted buying opportunity for speculators expecting a market rebound after October.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.