After hitting a peak of $0.000059 following a consistent upward trend, Bonk [BONK] encountered a significant drop to $0.00003837.
Nevertheless, in the subsequent days, the meme token witnessed a consecutive uptrend lasting four days, hinting at a possible breakthrough. Currently, at the time of composing this piece, Bonk is trading at $0.00004648, marking an 8.03% rise according to daily charts.
During the same period, the trading volume of the meme token surged by 109.84%, hitting a milestone of $1.01 billion.
Despite the recent price surge, Bonk still lingers approximately 20.79% below its all-time high achieved 18 days ago.
Following the recent surge, analysts are contemplating the future path of the meme token. Notably, a Santiment analyst anticipates further uptrends, highlighting the influence of FOMO.
Market Sentiment Analysis
In their assessment, Santiment suggested that Bonk is poised for additional growth due to the relative lack of attention from the masses.
According to their analysis, the meme token is likely to continue its surge until FOMO reemerges. Consequently, when there’s excessive greed among investors, larger wallets tend to sell, leading to short-term price retracements.
Based on Santiment’s data, the social dominance of Bonk has decreased from 1.53% to 0.27%. Typically, the market tends to move counter to the expectations of the masses.
Hence, when there’s reduced focus from investors, prices observe an uptrend, and vice versa.
Interpreting Bonk’s Charts
According to the analysis conducted by CryptoCrypto, Bonk is currently undergoing a robust upward trajectory fueled by increased buying pressure.
Initial signs of this momentum and buying pressure are visible through a bullish crossover on Bonk’s Relative Strength Index (RSI) in the last 24 hours, indicating the dominance of buyers.
Further confirmation of the strength of the upward trend is provided by the continuous rise in the Relative Vigor Index (RVGI), signifying a strengthening current trend with prospects for further continuation.
Moreover, Bonk’s Long/Short Ratio demonstrates a prevalence of long positions in the market, suggesting that the majority of investors are optimistic and betting on price appreciation of the meme token.
With a surge of 8.36% in Open Interest reaching $27 million, it implies that new market participants are entering to take positions in anticipation of price appreciation.
Summarily, Bonk is presently facing increased buying pressure with active investors opting for long positions.
Hence, keeping the current factors stable, Bonk could potentially reclaim the $0.000050 levels. A breakout beyond this point may propel the meme token to reach $0.000054. Conversely, in the event of a market correction, Bonk might retreat to $0.00004211.