- BONK sell orders suggested there was plenty of liquidity in the north.
- The lower time frame question zone could yield a positive answer.
Bonk [BONK] recovered past the highs it reached on December 15. This breakout caused the bulls to push prices to the $0.0000477 level, 36% above the previous high. Since then, prices have fallen again.
A demand zone was identified, but it remains to be seen whether BONK could recover and move higher, or if prices would fall further. The order book provided some clues.
The demand zone with a lower time frame
Source: BONK/USDT on TradingView
Within the span of four hours, BONK saw some consolidation in the $0.0000312-$0.0000342 region on March 4. The same area was tested again a few hours before press time. The 12-hour chart showed that momentum and market structure remained strongly in favor of buyers.
If the demand zone, highlighted in cyan, were to be defended, BONK could likely rise to the Fibonacci extension level of $0.0000509. A drop below $0.00003 would signal a structure break in the 1-hour time frame and could send BONK prices lower.
The purchasing volume has been remarkable in recent days. As things stand now, a major correction was the inference from the charts.
The limit sell orders were thick
Source: Mob graph
AMBCrypto’s analysis of the MobChart order book data showed that there were multiple limit sell orders in the North worth more than $100,000.
Realistic or not, here is BONK’s market cap in BTC terms
In particular, $0.000045 and $0.000048 were strong resistances. They had $550,000 and $932,000 in limit sell orders respectively.
To the south, the $0.00003 and $0.000028 support levels had $318,000 and $187,000 worth of limit buy orders, respectively. This meant that if the sellers seized the upper hand, they could reduce prices relatively quickly.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.