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Will BONK’s Recent Gains Hold Up Against $840 Billion Token Liquidations?
- BONK risks massive liquidation of 840.4 billion tokens at $0.00002838.
- The recent 4% price increase aims to test the rising wedge support.
With such exciting volatility, the cryptocurrency market is still attracted by meme coins. Among them, DISGUST has become a recognized player among investors and enthusiasts.
The Solana-based token has recently seen significant price swings that saw it fall below a major support level. As BONK attempts to regain lost ground, the market is eagerly awaiting a pivotal moment in its journey.
BONK price has recently shown signs of life, rising 4% in what could be a retracement to test a critical rising wedge support level.
This move comes after a break below the key support level on July 29, with traders wondering whether this is just a short-term bounce or perhaps the start of a broader recovery.
As BONK approaches the rising wedge support level, investors are looking for a breakthrough or rejection. If it successfully breaches this level, it could signal a renewed bullish rally.
However, if the move is rejected, further declines could occur.
Source: Tradingview
Influence of the settlement pool
The large supply of tokens liquidated at $0.00002838 represents both an opportunity and a threat for the BONK price.
If the price reaches this level, it could lead to more liquidations, which could play a role in pushing its price up further. However, the large number of shares could also be a strong resistance level in the pool.
Source: Coinglass
BONK’s floating interest
The token has seen volatile price action. This has also been reflected in the time-weighted open interest data for the same period. Open interest has increased during recent price increases, indicating more bullish trades and increased trader optimism.
Indeed, there have been instances where a drop in open interest has been followed by sharp price drops, suggesting profit-taking or liquidations.
Source: Coinglass
Realistic or not, here it is BONK Market Cap in BTC terms
The price action for BONK will be significant in the coming days. If the token can capitalize on its recent momentum and successfully liquidate the pool, it could lead to the anticipated recovery.
However, if it fails to break above the key level, it could indicate renewed selling pressure.