BONK, Solana's memecoin sensation, has surged by 73% since April 22, driven by speculation and a bullish market. With a market cap of $1.5 billion, could it reach $0.00004? Let's analyze the factors behind this explosive rally.
The memecoin BONK has had a spectacular performance this week, surging by over 60% in 7 days, driven by the renewed interest in speculative assets on the Solana blockchain.
Becoming the second most significant memecoin in the ecosystem, BONK is once again attracting the attention of investors fond of risky bets in this unique segment of the crypto market. This surge coincides with the announcement of their platform LetsBonk.fun to launch tokens.
Since April 22, its price has surged by nearly 73%, rising from 0.00001247$ to an intraday high of 0.00002167$ on April 28, its highest level in 5 months.
At the time of writing, BONK is trading around 0.00001923$, showing a decline of 4.61% in 24 hours and an increase of 60% in a week. Its market capitalization briefly exceeded 1.7 billion dollars before stabilizing at 1.5 billion.
Simultaneously, BONK’s transaction volume has surged by 98% to reach 478 million dollars, reflecting a high level of speculative activity on the token.
This surge in BONK is part of a broader trend of increased interest in memecoins, a category of crypto assets with a strong humorous and speculative component. Among the main representatives, DOGE and SHIBA INU have respectively increased by 3% and 5% in the past week.
Other atypical tokens like TRUMP (+73%) or BRETT (+83%) have also recorded remarkable performances, pushing the total market capitalization of the memecoin sector to 55.5 billion dollars, a 17.5% increase in a week.
Investors are returning to volatile assets, seeking high returns in a context where risk appetite is growing.
Open interest on BONK futures contracts has tripled in a few days, rising from 11 million$ on April 22 to over 43.2 million$ on April 26. Although now at 28 million$ at the time of writing, this indicator remains well above levels seen for several months.
Data also shows that the majority of positions are long (buyers), indicating bullish expectations from traders on the future path of BONK.
High open interest is often a sign of an engaged market – but also more exposed to abrupt movements in case of a turnaround.
According to Santiment data, BONK’s social dominance has surged from 0.09% to 0.57% between April 20 and 26. This high media exposure, both to the general public and institutional players, fuels a sense of FOMO that can impact price increases.
This digital buzz coincides with the announcement of their platform Letsbonk.fun, a contender to the PumpFun platform for token launches on Solana.
From a technical standpoint, on April 13, BONK broke a downtrend line, confirming a bullish breakout. The token later crossed the 50-day and 100-day Exponential Moving Averages (EMA), confirming the trend reversal.
The short-term target is now around 0.00002410$, corresponding to the 200-day Simple Moving Average. If there is a daily close above this level, BONK could target the peak of January 19 at 0.000040$, representing a potential increase of over 100%.
However, with the Relative Strength Index (RSI) currently in overbought territory at 71, a consolidation or short-term profit-taking is likely.
As a result, BONK could retrace to 0.00000145 dollar up to 0.0000138 dollar. A loss of this level will lead to a drop to 0.0000125 dollar.
On a fundamental level, BONK is now establishing itself as the second most significant memecoin in the Solana ecosystem in terms of market capitalization. Although highly speculative and volatile, its renewed interest confirms the resurgence of memecoins.
For crypto enthusiasts, BONK represents a short-term trading opportunity not to be overlooked. A drop to 0.0000145 or 0.00000138 dollar would be even more attractive as BONK could target the zone at 0.000024 dollar, ensuring almost a 40 to 50% gain in case of further BTC price growth.
Here is a guide to buying the memecoin on Bitget for those looking to seize this opportunity:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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