BONK’s Confusing Signals: To Buy, Sell, or Just Grab Some Popcorn?

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  • The $0.0000165 level on the lower timeframe chart must be defended in case of a pullback. But, no pressure, right?
  • The demand in recent days was, well, considerable. But looking back to March, it’s like asking if anyone showed up to the party – spoiler: not really.

Ah, BONK [BONK] – the meme coin that has been galloping past June’s high, all thanks to some enthusiastic demand. This demand was proudly displayed in the trading volumes of both the spot and derivatives markets, which, let’s be honest, is basically code for “lots of buzz.”

As we observe from our comfy armchairs (also known as market charts), BONK is currently offering the kind of signals that would make any analyst curl up into a ball of confusion.

The weekly chart is like that one guy at a party who insists on telling you about his failed investments – a bearish swing structure that’s practically shouting “I’m not ready to party yet!” The swing points were at $0.00000258 and $0.0000114, and if BONK dares to go past the former resistance level, well, that’s the sign of a bullish outlook… in the distant future.

But as it stands, a bullish argument on the weekly timeframe is like trying to convince yourself that it’s Friday when it’s only Monday. Not happening.

In June, we saw the first sign of a trend shift with a higher low, which sounds promising, but let’s not break out the champagne just yet. The OBV has been pretty much snoozing since March.

And oh, the volume indicator – it’s like a party where everyone shows up for the first 15 minutes, and then, well, it’s all downhill from there. That lack of consistent demand could put a serious dent in the chances of a sustained rally.

The weekly RSI, hovering below neutral 50 (except for a brief flirtation with the magic number in May), is another red flag waving in the distance. It’s like everyone’s saying, “Come on, BONK, show us something!” But it’s just… not.

Right now, the RSI is sitting at a rather underwhelming 49.86. If it ever manages to break past 50, then we might just see some momentum, but until then, don’t hold your breath.

The 1-day BONK chart: Now This One’s A Little More Fun!

But wait! Don’t leave the party just yet – the 1-day BONK chart has been feeling a bit more lively after Saturday’s (July 5th) gains. It’s like someone turned on the music, and suddenly everyone is dancing.

The OBV made a new high, compared to June’s high, and the RSI finally decided to get off its lazy 49.86 and shoot above neutral 50. Together, these indicators are like the cosmic signals of “Yes, maybe there’s something here after all.”

BONK even managed a market structure break on the daily chart, on June 28th – a bullish sign that can only be described as “Hey, we might be onto something here.”

With higher lows creeping in over the past ten days, it looks like the BONK bulls are flexing their muscles, so to speak.

But alas, the local high has been reached. Time to close up shop on those long positions, and if you’re lucky, exit with a tidy profit. If you’re looking for your next swing trade, keep your eyes peeled for a bearish market structure shift on the 4-hour chart.

More likely, though, the increased trading volume during the rally suggests that the BONK train might keep chugging forward. Traders can wait for the $0.0000183 level to turn into a glorious support level before diving back in long. Patience, my friend, patience.

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2025-07-06 10:30