Bonk [BONK] is reflecting the upward trend seen in the wider cryptocurrency market. Currently, the meme token is trading at $0.00002507, marking a notable 38% increase over the past week.
Over this period, BONK’s market cap has grown from $1.2 billion to $1.8 billion.
Interest in this alternative coin is on the rise, as trading volumes spiked by a striking 272% within a 24-hour timeframe, according to CoinMarketCap’s data.
The recent rally of BONK has been concurrent with the surges observed in Dogecoin [DOGE] and Shiba Inu [SHIB], signaling a growing interest in meme-based cryptocurrencies.
Looking at the one-day chart, BONK has displayed a strong bullish sentiment, with the 50-day Simple Moving Average (SMA) crossing above the 100-day SMA. This alignment coincided with a bullish candle, emphasizing the strength of the uptrend.
The surge in BONK appears to be driven by buyers, as indicated by the Relative Strength Index (RSI) reading of 65. The RSI has moved upwards after surpassing the signal line, indicating increasing buying pressure.
If the buying momentum persists, BONK could potentially climb by 32% to reach the next resistance level at the 1.618 Fibonacci level ($0.00003447).
Assessment of BONK’s Derivatives Data
The derivatives market reflects a mixed sentiment towards BONK. Trading volumes for this meme coin have surged by more than 167% to $198 million presently, signaling a greater interest from futures traders in BONK’s future performance.
Nevertheless, the decreasing open interest implies a decline in the number of active positions on BONK. This suggests that futures traders are exercising caution due to the volatile price movements.
With a long/short ratio of 0.95, it indicates that short positions outweigh long positions. This tilt towards short positions could be attributed to an increase in long liquidations amounting to $293,000 currently. Conversely, short liquidations total $194,000 over the past 24 hours.
The derivatives market often serves as a reliable gauge of the market’s bullish or bearish sentiment. The conflicting data suggests uncertainty regarding the token’s sustained uptrend.
However, the optimistic outlook for Solana-based meme tokens could bolster the uptrend. Recent data from CoinGecko reveals a 20% surge in the total market capitalization of such meme coins in the last 24 hours, reaching over $15.87 billion.