- Bonk is up 8.03% in the past 24 hours.
- However, a decline in social dominance meant a potential pump until FOMO returns.
After reaching a high of $0.000059 following a sustained uptrend, Bonk went [BONK] saw a sharp decline to a low of $0.00003837.
Since then, however, the memecoin has experienced a four-day consecutive uptrend, signaling a possible breakout. At the time of writing, Bonk was trading as high as $0.00004648, up 8.03% on the daily charts.
During the same period, the memecoin’s trading volume increased 109.84% to a record $1.01 billion.
Despite the price increase, Bonk remains approximately 20.79% below its 18-day ATH.
With the recent gains, analysts continue to ponder the memecoin’s trajectory. To that extent, Santiment analyst sees more upside, citing FOMO.
Market sentiment
In their analysis Santiment stated that Bonk will make more profits because there is less attention from the public.
Source: Santiment
According to them, the memecoin will continue to experience a pump until FOMO returns. So when the crowd gets greedy, large portfolios are sold off and prices return shortly afterwards.
Based on data from Santiment, social dominance has fallen from 1.53% to 0.27%. Most of the time, the market performs the opposite of the public’s expectations.
So when investors pay less attention, prices rise and the opposite is true.
What BONK’s charts say
According to AMBCrypto’s analysis, Bonk experienced strong upside momentum amid increased buying pressure.
Source: TradingView
For starters, this momentum and buying pressure is evident from a bullish crossover on Bonk’s Relative Strength Index (RSI). Over the past 24 hours, the memecoin has made this crossover, indicating its dominance of buyers.
The strength of the upward momentum was further evidenced by a sustained rise in the Relative Vigor Index (RVGI). When this rises, it shows that the current trend is getting stronger and could continue.
Source: Coinglass
Furthermore, Bonk’s Long/Short ratio shows that longs dominate the market. This means that most investors are bullish and are betting that the price of the memecoin will rise.
Source: Coinglass
With most investors taking long positions, Open Interest is also up 8.36% to $27 million. This means that new investors enter the market to take positions, expecting prices to rise.
Read Bonk’s [BONK] Price forecast 2024–2025
Simply put, Bonk is currently experiencing higher buying pressure, with active investors taking long positions.
Keeping current factors constant, Bonk could regain the $0.000050 level. A breakout from here will see the memecoin reach $0.000054. Consequently, a market correction will cause government bonds to fall to $0.00004211.
Credit : ambcrypto.com
