Bonk ($BONK) is bullish on Wednesday, trading around $0.0000037 as improving macroeconomic conditions lifted sentiment across the cryptocurrency market.
The meme coin benefited from a broader rally after the latest US Consumer Price Index (CPI) report showed inflation slowed more than expected, increasing optimism that the Federal Reserve could adopt a more accommodative monetary policy.
Memecoins rally on softer US inflation data
According to data from the US Bureau of Labor Statistics, the Consumer Price Index declined by 0.4% month-over-month in June, marking the sharpest monthly drop since April 2020.
As a result, annual headline inflation slowed to 3.5%, down from 4.2% in May.
Meanwhile, core inflation, which excludes food and energy prices, remained unchanged on a monthly basis, leaving the annual core inflation rate at 2.6%, compared with 2.9% in the previous month.
The softer inflation readings improved investor sentiment across equities and cryptocurrencies, encouraging renewed demand for higher-risk assets such as meme coins.
Leading memecoins, including Dogecoin, Shiba Inu, Fartcoin, PEPE, and $BONK, are all in the green following yesterday's report.
The recent price discovery is supported by rising derivatives data.
According to CoinGlass, Bonk perpetual futures open interest (OI) rose by 5% in the last 24 hours and now stands at $6.28 million.
Rising open interest suggests traders are opening leveraged positions, reflecting stronger speculative demand.
If this trend continues, it could increase the momentum behind $BONK's current rebound.
$BONK technical outlook: Bulls target break above $0.0000040
The $BONK/USD 4-hour chart remains bearish despite the recent rally. However, $BONK continues to strengthen as buyers push the token toward the important $0.0000040 resistance level.
Momentum indicators are becoming increasingly supportive.
The Moving Average Convergence Divergence (MACD) indicator has generated a bullish crossover on the four-hour chart. The RSI of 37 means that $BONK is exiting the oversold territory.
A decisive daily close above $0.0000040 would improve $BONK's short-term outlook, although the broader trend remains cautious.
If $BONK breaks above $0.0000040, traders will likely focus on the next major resistance level at $0.0000041 (50-day EMA).
The other major resistance levels include the 100-period EMA at $0.0000042 and the 200-period EMA at $0.0000044.
These moving averages represent significant technical barriers where sellers could attempt to regain control.
However, if the buying momentum fades, immediate support is located near Monday’s low of $0.0000036.
Failure to defend this support could see $BONK extend its decline towards the $0.0000033 level over the next few days.
Holding above these levels would help preserve $BONK's recovery and maintain the possibility of another attempt to break above the psychological $0.0000040 level.
Bonk is benefiting from renewed optimism across the cryptocurrency market after softer US inflation data boosted risk appetite.
A confirmed close above $0.0000040 would strengthen the bullish case, but sustained buying participation will likely be needed for $BONK to overcome the next series of moving-average resistance levels.