BONK Coin Battles Major Resistance After Massive Rally

Bonk (BONK) price has captured market attention with a powerful rally, soaring more than 180% since early April. Now, the cryptocurrency faces a critical test as it approaches the yearly VWAP resistance at $0.00002000.

Bulls have driven the price upward with strong momentum. Yet, the signs of slowing near key levels suggest that a decisive moment is near. Traders are closely monitoring price action as BONK battles to sustain its bullish breakout.

Bonk Crypto’s Strong Rally Faces Key Resistance

Since early April, the BONK price action has shown strong bullish momentum, consistently forming higher highs and higher lows. The Bonk price’s sharp increase was due to accumulation at the base when relatively low FileName traders took out weak holders, giving the real buyers a chance to maneuver.

The alignment of the EMA 10, 20, and 50 on the daily chart was another bullish technical signal at press time. According to market analysis, “Price action remains firmly bullish as long as key support levels hold above $0.00001800,” said an analyst at Bitcoinsensus.

However, for the current month and year, Bonk appeared to be consolidating and experiencing a breakout at the yearly VWAP level.

It was trading slightly above $0.00001957 at press time and could break out. The volume remained high, but the candle bodies were small with long wicks. It suggested that the upsurge was cooling at the moment.

Demand Zones Provide Support Beneath

There are several newly established demand zones at the base of the price chart in case of a pullback. These zones were initiated after the recent Change of Character, a bearish trend reversal indicator signifying the beginning of a rally.

Traders closely monitor these levels as input for signals that indicate the act of buying. If BONK price retests the $0.00001800 level and bounces back, it could result in another run toward the resistance area.

A further decline could bring BONK price to the demand base at $0.00001600, where stronger buyers could push the price up.

According to Defi_Edward on social media, “$BONK breaking out of key levels with conviction”. Moreover, holding $0.00001800 well suggested that bulls were still in control.

This setup suggested that even minor pullbacks could be healthy for the market. They could allow the price to reset before making a new attempt at higher targets.

Open Interest and Volume Growth Show Bullish Strength

The open interest and the trading volume increased significantly since early April, indicating the return of market players. In case of Bonk, historical price action provides evidence of the same for prospective steep movements in the past.

Since the futures volume has also risen in tandem with the price, it only shows that the bigger players are accumulating their stakes. A slight decline in the Open Interest after first increasing sharply is actually good, as it eliminates weak players and refreshes the market.

MessariCrypto reported, “Mindshare for BONK increased by over 620% recently, showing growing attention on both social and trading platforms.”

Open interest trends at press time mirrored the setup seen during October–November 2023, which led to a strong rally. Many market watchers were comparing the current phase to the early stages of a bullish cycle, where smart money was actively positioning for further gains.

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Possible Scenarios for BONK Price Action

If Bonk price reaches and sustains a breakout above $0.00002000, the next level to watch out for will be $0.00002400. A continuation of the bullish trend could take the price all the way up to $0.00002840 area where previous yearly comments have been established.

However, if the price is rejected and backed down from the VWAP resistance level, it could create pressure on the bulls. A breakdown below $0.00001800 would probably take BONK to the $0.00001600 – $0.00001550 support level.

Stronger selling pressure could even drag BONK price lower toward $0.00001300. ElonMoney stated, “$BONK is at a critical point. If bulls fail to break $0.00002000 cleanly, downside risks will increase significantly.”

Despite minor slowdowns, BONK’s long-term structure remained bullish after a strong 2024 performance. BONK price has risen to over 104% from the beginning of the year, thus eradicating the bearish market observed in 2023.