If buyers can keep up the momentum, BONK could rally by 32% to the 1.618 Fibonacci level.
- BONK has continued to rally after an over 38% gain in the last seven days. A bullish crossover on the one-day chart suggests more gains for the memecoin.
Bonk [BONK] is mirroring the gains across the broader cryptocurrency market. At press time, the memecoin traded at $0.00002507, after rising by more than 38% in just seven days.
During this time, BONK’s market capitalization increased from $1.2 billion to $1.8 billion.
Market interest in this altcoin continues to rise as in just 24 hours, trading volumes had surged by more than 272% per CoinMarketCap.
BONK’s rally has coincided with that of Dogecoin [DOGE] and Shiba Inu [SHIB], an indication that meme coins are amassing buyer interest.
On its one-day chart, BONK showed strong bullish sentiment after the 50-day Simple Moving Average (SMA) crossed above the 100-day SMA. This crossover coincided with a bullish candle, highlighting the strength of the uptrend.
Source: Tradingview
Buyers are driving these gains, as the Relative Strength Index (RSI) with a value of 65 showed. This metric is tipping north after crossing above the signal line, suggesting that the buying pressure is gaining strength.
If buyers can keep up the momentum, BONK could rally by 32% to the next resistance level at the 1.618 Fibonacci level ($0.00003447).
Analyzing BONK’s derivatives data
The derivatives market shows mixed sentiment towards BONK. Trading volumes for the meme coin have surged by more than 167% to $198M at press time showing that futures traders are increasingly betting on BONK’s future performance.
However, the declining open interest shows that there is a decline in the open positions on BONK. This shows that futures traders are taking caution due to volatile price swings.
Source: Coinglass
The long/short ratio at 0.95 suggests that short positions are more than long positions. The bias towards shorts could be attributed to an influx in long liquidations that came in at $293,000 at press time. Conversely, short liquidations came in at $194,000 in 24 hours.
The derivatives market is a good indicator of bullish or bearish sentiment in the market. Therefore, the mixed data shows there is uncertainty around the token’s sustained uptrend.
However, the positive sentiment around Solana-based meme coins could support the uptrend. Data from CoinGecko shows that in the last 24 hours, the total market cap for these meme coins has risen by 20% to more than $15.87 billion.
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