Bonk Inu [BONK] is causing a stir with its announcement to release the first-ever meme token exchange-traded product (ETP) in the United States.
Unveiled during the Solana Breakpoint conference, BONK has teamed up with Osprey Funds to introduce the ETP by the culmination of the year. This news has sparked excitement among investors, as BONK’s value is predicted to climb significantly, with a potential surge of over 200% anticipated in October.
As the pioneering memecoin to pursue an ETP, BONK is laying the groundwork for further expansion and potentially an exchange-traded fund (ETF) down the line. Investors are eagerly awaiting updates on BONK’s advancement.
BONK’s recent progressions have influenced its price performance. The BONK/USDT pair has now repeatedly interacted with this critical support level, a level that triggered a price uptick of more than 182% from April to May this year.
Nevertheless, the pair has encountered a downturn since then, revisiting the support region on 5th August when the entire cryptocurrency market hit half-year lows.
With the announcement of the Bonk ETP, potentially leading to the initial memecoin ETF, bullish sentiment is on the rise. The Bollinger Bands on the daily time frame are constricting, indicating a potential breakout.
The moving average convergence divergence (MACD) indicator also reflects increasing buying momentum, hinting that the price may escalate in the near future.
BONK is presently trading above the Bollinger Band’s average, signifying a growing positive sentiment.
BONK Open Interest-weighted funding rates
Another optimistic sign stems from the Open Interest-weighted funding rates, which have turned favorable. This suggests that long traders are growing more positive about BONK’s price outlook.
Currently, the Open Interest-weighted funding rate sits at 0.0006% with BONK valued at $0.000018. This increasing confidence among traders might drive it to new peaks, potentially revisiting its July highs and producing over 110% profits.
Selling Pressure and Net Short Positions Decline
The sell volume and net shorts are dwindling as well, further bolstering the optimistic view. The drop in contract transfers implies a decrease in selling pressure and a phase of market consolidation.
This creates a favorable setting for a price upsurge, particularly if demand stays robust and the supply continues to dwindle.
With waning selling pressure and mounting long positions, BONK seems well-poised to surge and potentially surpass its prior peak levels.
The upcoming launch of BONK’s ETP, coupled with decreasing selling pressure and rising bullish sentiment, could propel its value upwards.
Investors are eyeing a potential breakout that could propel BONK back to its peak in July, representing a gain of 110%, setting the stage for further expansion in the final quarter of 2024.