A new meme coin called BONK has surged up out of nowhere. Just in two days, it ran over 500% (unleveraged). This coin has been trending all over social media for good reason it seems, so in this writeup, we’ll discuss the outlook for BONK.
Memestock and meme coin rallies can be very profitable if you know how to approach the situation, but they also come with a great deal of risk. From the top that BONK created, it has already come down more than 70%.
Personally speaking, I am not a spot buyer of the BONK coin. As quickly as meme coins can surge, they can also dump, and especially in a bear market, those are the last things that you would want to be bag-holding.
However, the beauty of leverage trading is that we can make money on BONK both if it goes up in value or if it goes down without having to bear the risk of holding the coin itself into a potential bottomless hole.
Here. we will simply go over the two most prominent and safe longing opportunities for BONK. However, if you are interested in making money on meme coins even if the market was to go down, make sure to join (at least) the free Livestream sessions over in Titan Trading.
Long setup one: catching BONK at support:
The first option to make money on BONK with a long position is by getting in at the very important 4-hour support level that sits between 0.0000012198 and 0.0000010400.
You can take an entry at the upper level of this demand zone (0.0000012198) if you want to play this aggressively or you can take the entry towards the downside of this area (0.00000104) for a more cautious approach.
Of course, risk needs to be managed by applying a stop loss. As a idea, you could use a stop loss that is going to make sure that you do not risk more than 1% on your trading balance.
Take profit could be taken around 0.0000015 and 0.0000019 for this first setup.
Long setup two: longing BONK above resistance
Instead of trying to catch BONK at support, we can also wait for a confirmed break of resistance as a confirmation to long BONK.
A good confirmation of the break of resistance for BONK would be entering after a 4h candle CLOSE above 0.0000022300.
At that point, it is unlikely that we fall down below 0.00000197 (which is the stop loss on this setup) and we can look to run BONK back to the current highs around 0.000004 and even to new all-time highs.
The main tips that can be given not only for BONK but for meme coins (and stocks) in general are
⦁ It’s important to consider the risks of investing in something that has no proven track record or valid use case;
⦁ Be extremely careful of FOMO and don’t let big % gains posted on social media outlets affect your trading decisions;
⦁ USE A STOP LOSS and always make sure to go in with a predetermined amount of money that you are completely ok with losing;
⦁ Have fun and enjoy the setups!
