- BONK gained key support in October.
- Can bulls use this to enter the market with a 25% gain at stake?
Bonk (BONK) defended crucial support in October, raising the prospects of a likely rise in memecoin.
After an aggressive rally in September, recording net gains of almost 65%, BONK calmed down during the first half of October.
But the pullback remained above $0.000022, a key support in the second/third quarter (marked in white). Could bulls gain additional profits from memecoin in the short term?
BONK’s 25% potential winnings at stake
Source: BONK/USDT, TradingView
On daily charts, the immediate upside target was $0.000028. With the religious defense of the previous support of $0.000022, BONK could aim for the immediate target.
If so, a gain of 25% could be achieved, providing an excellent risk-reward ratio of 2.4.
If the rally extends to the next target of $0.0000034, gains of 54% could be achievable. Chart indicators supported the bullish thesis.
Notably, the Stochastic RSI faced a reversal from the oversold zone while the RSI remained above the neutral level. This suggests that a bullish reversal was in progress and that above-average demand could support the upward movement.
But a decline below the $0.000022 support would invalidate the bullish thesis. Such a decline could take BONK to $0.000015.
Smart Traders Buy BONK
Source: Coinglass
Smart traders on the Binance exchange were net long memecoin, further highlighting the wild expectations of a price reversal higher.
According to the Top Trader Long/Short ratio, which gauges smart money on the platform, 68% of all positions were betting on BONK to rise. This is extremely bullish sentiment in the futures market.
Additionally, the liquidation heatmap marked $0.000022 as a key liquidity zone with a massive accumulation of leveraged long positions.
Read Bonk Price Prediction 2024-2025
This reinforced the level as a key support zone, as price could return there before rebounding.
Source: Coinglass
Therefore, BONK’s setup still presented an excellent risk-reward ratio, especially for long positions if memecoin remained above $0.000022. But a drop below support would invalidate the bullish projection.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
