Bonk’s price is going up as it forms a Golden Cross, suggesting it might keep rising. Also, the funding rate turned positive from negative in the last four days, which could make bearish investors less worried. This shift might ease concerns for bears who saw $2 million worth of liquidations.
Bonk (BONK), a popular meme coin in the Solana ecosystem, recently experienced a significant surge in value within just four days. The holders of BONK coins have become more active, which could push the meme coin’s price even higher.
Bonk (BONK) Price Dynamics and Market Analysis
Recently, Bonk’s price has been caught in a downtrend, slipping below $0.000024 in the past few days. However, this trend is likely to shift as bearish investors may retreat after the recent losses.
Over the last four days, short positions totaling over $2 million were liquidated. As prices surged, short contracts anticipating further declines in the altcoin’s value were settled and sold off. This trend is expected to deter bears from betting against Bonk’s price rise.
The funding rate of Bonk, which remained negative for most of the past month, has now turned positive. This rate reflects the fee paid from one trading party to another in perpetual futures contracts, aiming to balance market demand. The shift to positive rates indicates a dominance of long contracts in the Futures market, suggesting a potential rise in prices for Bonk.
Bonk (BONK) Price Rally and Potential Outlook
Bonk’s price recently surged by 80% within just four days, igniting optimism among investors. This rally is attributed to two key factors that indicate further potential for growth.
One factor contributing to the positive outlook is the formation of a Golden Cross. In technical analysis, this bullish signal occurs when a short-term 50-day Exponential Moving Average (EMA) surpasses a long-term 200-day EMA. This suggests a potential upward market momentum for Bonk.
BONK/USDT 4-hourchart. Source: TradingView
The Golden Cross could assist Bonk in breaking through the resistance level marked at $0.0000284, providing momentum to rally beyond $0.00003. However, if bearish market signals prevail, Bonk’s price may retreat to $0.00002153. A breach of this level could invalidate the bullish thesis, potentially pushing BONK below $0.00002.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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