Memecoins
BONK Shakes Up Meme Coin Market, Wants More Gains
Last week, the technical team and on-chain analysis predicted that Bonk (BONK) would hit $0.000025. But that wasn’t the end, as the meme coin went further and surpassed the prediction.
Amid this recent surge, something else has happened, and a closer look suggests a surprising revelation.
Volatility Increases as Solana Meme Coin Surges Above FLOKI
According to CoinGecko, Bonk’s market cap was around $1.49 billion on July 1st. Around the same time, Floki (FLOKI), another meme coin, had a market cap of $1.62 billion. Fast forward to today, and things have changed, as BONK’s market cap has reached $1.73 billion while FLOKI’s was lower at $1.70.
The increase in market cap can be linked to the price performance of BONK, as market cap is a product of price and circulating supply. At press time, the price has increased by 10.50% in the last 24 hours.
BONK Market Cap. Source: CoinGecko
This is higher than FLOKI, which is up 3.58%. Following the price increase, Santiment data shows that volatility around BONK has increased. In particular, the on-chain analytics platform has placed the daily volatility at 0.042.
Volatility indicates how fast can prices move in a short period of time. When accompanied by buying pressure, high volatility can help the value of a token soar to incredible heights.
However, if the selling pressure is intense during high volatility, the price can collapse in a flash. In the case of BONK, the price could continue to rise if buyers do not rest on their oars.
BONK Price Prediction: Is the Corrective Phase Over?
Additionally, the daily chart shows an inverse Head and Shoulders (H&S) pattern formation. Typically, a regular H&S pattern shows three successive peaks. One is in the center (head) and the other two are outer peaks (shoulders) at each end.
If that were the case, it would be marked the end of BONK’s bullish trend as it is bullish-bearish. However, since the pattern is reversed, it means the trend is bearish-bullish. Therefore, BONK price may head towards $0.000031 if buyers decide to sustain the momentum.
Similarly, the Parabolic Stop-and-Reversal (SAR) supports the potential uptrend. The SAR is a technical tool used to predict the short-term momentum of a cryptocurrency.
To know more: Top 11 Solana Meme Coins to Watch in July 2024
When the dotted line is below the price, it means that the price can reverse downwards. But for the token, the dotted lines are below it. If this remains the same in the coming days, the recovery of the meme coin could be validated.
Furthermore, the relative strength index (RSI) increased reading. The RSI measures momentum using the magnitude of price changes. When it increases, it means that momentum is bullish, and when it decreases, momentum is turning bearish.
The RSI on the daily chart of BONK is 53.62, which indicates that buyers are dominant. If this continues, BONK will reach $0.000028 and then move to $0.000031.
However, the token will be overbought if the RSI reading reaches 70.00 or above. If this is the case, BONK could reverse to $0.000023.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.