BONK Eyes Potential Breakout as Support Holds
Bonk has slipped 35% from its July peak, following a wave of uncertainty across the crypto market. The meme coin is currently retesting the neckline support of a Cup and Handle formation, which could set the stage for a recovery.
On Thursday, BONK was trading at $0.00002606, down from $0.00004070 in July. Earlier in the day, Bitcoin reached a record $124,474 before pulling back, adding to the cautious sentiment in the market.
Futures Open Interest (OI) for BONK has fallen from $73 million in July to $38 million, reflecting lower activity and weaker enthusiasm for the Solana-based token. OI measures the total value of open futures or options contracts and often signals investor sentiment. Despite the drop, futures-weighted sentiment remains slightly positive at 0.0101%, with traders continuing to add long positions.
Currently, BONK is holding support at $0.00002563, backed by the 50-day Exponential Moving Average and the neckline of the Cup and Handle pattern, now acting as support at $0.00002500. It also sits comfortably above the 100-day and 200-day EMAs, at $0.00002306 and $0.00002174 respectively, helping maintain a mild bullish bias.
If the neckline support holds, BONK could aim for a breakout toward its July high of $0.00004074. However, if this level fails, the price could see further downside before finding a new footing.