BONK has capitalized on the recent memecoin upside to experience a strong upward momentum over the past week.
- BONK has surged by 11.75% over the past week. A shift in market sentiment sees BONK’s trading volume surge by 108.39%.
Over the past week, memecoin markets have made a significant recovery in every aspect. Bonk [BONK], similarly, was not left behind.
As of this writing, BONK was trading at $0.00001856, marking an 11.75% increase over the last seven days.
These gains on price charts have further been supported by increased demand. Over the past 24 hours, BONK’s trading volume surged by 108.39% to $161.3 million.
Its market cap increased as well, hiking by 5.69% to $1.31 billion over the same period.
Prior to these gains, BONK had been on a downward trajectory declining by 10.76% on monthly charts.
Despite the recent uptick, the memecoin remained 20.14% below its recent high of $0.00002324, and down 58.5% down from its ATH of $0.00004547.
Therefore, the current gains show signs of life, reviving optimism for the memecoin’s future prospects.
What BONK’s charts suggest
According to AMBCrypto’s analysis, BONK has broken out from a descending trendline. Over the past week, the memecoin has experienced a strong upswing, suggesting a sustained uptrend.
Thus, with the current market conditions amidst renewed memecoin frenzy, the memecoin could make more gains.
Source: TradingView
For example, BONK’s Relative Strength Index (RSI) has been rising from a low of 43.4 to 55.73 at press time. This indicated higher buying pressure than selling pressure as indicated by a surge in trading volume.
Source: Coinglass
Looking further, BONK’s total liquidation for long liquidation for long positions has declined over the past three weeks, hitting a low of $26.15k at press time.
A decline in liquidation for longs implied that investors were willing to pay a funding fee during market downturns to hold their positions. This showed investor confidence in BONK’s future potential.
Source: Coinglass
Finally, the memecoin’s OI-Weighted Funding Rate has been positive over the last two days suggesting a shift in market sentiment.
When this metric turns positive, it suggests that long position holders are willing to pay short position holders. Such market behavior reflects bullish sentiment where more traders are betting on the prices to increase.
Simply put, BONK was enjoying a strong shift in market sentiment. This suggested a strong upward momentum and positive market sentiment.
As such, after a breakout from the descending trendline, teh memecoin will attempt the next significant resistance level at $0.00001986. A breakout from this level will strengthen the memecoin to challenge $0.00002457.
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