BONK’s rally gains traction as traders set their sights on breaking through significant resistance at the $0.00002 level.

• BONK surged nearly 10% after rebounding from wedge support, hinting at growing bullish momentum.

• On-chain and technical metrics lean bullish, setting the stage for a potential breakout above resistance.

The memecoin BONK has adhered to a rising wedge pattern since early March, consistently bouncing off its ascending support trendline. Following a local low of $0.00000884 in early April, BONK has experienced a steady uptrend, displaying resilience in a challenging market.

Recent bullish sentiment was amplified by a notable bounce from the support level, sparking optimism among investors. According to CoinMarketCap data, BONK saw a price surge of close to 10%, indicating an accumulation of bullish momentum as the price consolidates within the wedge, suggesting a forthcoming breakout.

Source: TradingView

Stochastic RSI hints at potential price reversal

Technical indicators support this bullish outlook, with the Stochastic RSI currently residing in the oversold territory as per the daily chart. This suggests a decrease in selling pressure, indicating a higher probability for a potential price reversal.

If BONK maintains its bullish momentum, it may see the wedge pattern yield a breakout soon.

On-chain metrics supporting bullish sentiment

On-chain metrics reveal positive trends for BONK holders. COINOTAG’s analysis utilizing CoinGlass data shows that the memecoin’s Weighted Funding Rates remained stable, fluctuating between 0% and 0.02% throughout its consolidation phase.

This stability indicates a lack of excessive leverage, reducing the risk of abrupt liquidations that could undermine a rally.

Source: CoinGlass

Additionally, Liquidation Heatmaps reveal significant liquidity clusters above the $0.00002 level. These points could enable accelerated price movement if bulls manage to bypass this psychological resistance.

Source: CoinGlass

Given the current price stability at the wedge support, alongside reversal signals and robust liquidity above, the market position appears bullish. A decisive breakout above $0.00002 could lead to BONK testing new resistance levels, presenting traders with exciting opportunities.

Conclusion

This analysis indicates that BONK is poised for potential upward movement, supported by technical and on-chain metrics. Such insights underline the importance for traders to remain vigilant in the coming days, as a breakout above key technical levels might open the door for substantial gains.