- 33% weekly run puts Solana’s BONK back above $2 billion in global market cap.
- Shiba Inu-themed BONK is now 29.7% down from its peak price in March 2024.
- Analysts forecast BONK’s move southward to erase overleveraged positions.
Solana’s Bonk (BONK) embarked on a double-digit bull run in a 7-day time frame, surging past the $0.000030 resistance level. As BONK managed to break above this crucial price range in its third attempt, crypto analysts are now measuring the continuation chances of its latest uptrend.
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“If BONK goes above this level, magic happens,” utters crypto analyst WebTrend Analytics on X, highlighting the price range between $0.000035 to $0.000040 as a critical point for upcoming price movement. The crypto analyst refers to BONK’s confluent resistance in this price area, which could produce a new all-time peak for BONK if a northward breakout occurs.
BONK claimed a record on March 4, 2024, at the beginning of the most successful meme coin bull cycle yet. Then, it took BONK less than three days to retrace below $0.00003 support after claiming an all-time high of $0.00004547. However, this time, a potential all-time high retest highly depends on BONK’s liquidity pockets, dwelling around the $0.00003 price range.
Massive Liquidations to Rain on BONK’s Parade?
Rising liquidations on BONK’s Derivatives are visible in the high liquidity areas, as portrayed in the graphic below, compiled from CoinGlass on-chain data. In case of rapidly accelerating liquidations on both long and short positions, BONK’s upward momentum could be paused for a strong market correction to eliminate overleveraged and late long entries.
However, the likelihood of a short-term liquidity hunt in leveraged positions doesn’t necessarily mean a sharp drop in BONK’s price. According to BONK’s historical price movement, we can see staggering amounts of liquidations on BONK’s all-time high on March 4 and the day after. When BONK made the run to $0.00004547, Derivatives liquidations soared on both sides.
For instance, the all-time milestone day saw $3.39 million in short BONK position liquidations, while long positions reached $2.45 million. BONK’s long position holders took the bigger piece of the liquidation cake the next day, with $3.35 million longs liquidated on March 5, compared to $1.35 million in short positions liquidations.
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According to CoinGecko, BONK is changing hands at $0.00003197 as of press time. If the popular Solana meme coin manages to hold above the resistance barrier of $0.000030, the upward momentum could send BONK to $0.000037. However, a daily close below this resistance area is likely to test the support clusters at $0.000020 and $0.000013.
On The Flipside
- Since BONK’s inception, the Shiba Inu-themed meme coin has increased its market depth but faced new competitors.
- To illustrate, Dogwifhat (WIF) surpassed BONK in market cap and has a similar trading volume on Derivatives at $1.39B.
Why This Matters
Emerging on Christmas Day in 2022, Bonk successfully gave Solana a second breath, contributing to a thriving Layer-1 ecosystem with a whopping 7,964% yearly return.
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