BONK coin surges 13% in 24 hours: Will positive sentiment persist?

• BONK has surged by 13.65% in 24 hours.
• Fundamentals suggested that the weekly decline was likely a pullback.

Over the past 24 hours, memecoins have experienced a massive surge. Amidst this recovery, Bonk [BONK] was not left behind. After a strong decline over the past week, BONK has made a massive recovery over the last 24 hours.

As of this writing, BONK was trading at $0.00002289. This marked a 41.66% increase on monthly charts and an extension to the bullish trend by 13.65% over the last 24 hours.

Its trading volume experienced an exponential surge, rising by 106.96% to $253.14 million. Also, the memecoin’s market cap has surged by 12.14% to $1.64 billion, according to CoinMarketCap

Prior to these gains, BONK had been in a downtrend, declining by 6.47% over the past week.

The recent market conditions raise questions about whether BONK is on the verge of a sustained recovery.

Source: Market Prophit

AMBCrypto’s analysis showed that BONK was experiencing strong positive market sentiment. According to Market Prophit, the memecoin is enjoying market favorability.

The crowd sentiment was positive at 0.0577 while the Buzz score was at 1.006. Such positivity implies increased investor favorability for the memecoin.

What BONK’s charts suggest

According to AMBCrypto’s analysis, BONK has seen a renewed interest over the past 48 hours.

Source: TradingView

This demand is indicated by a rising Relative Strength Index (RSI). At press time, BONK’s RSI was 59 after rising from 35.6 in 48 hours. Such a surge shows increased buying activity as new buyers enter the market.

Thus, the recent decline has created buying opportunities for new entrants, creating buying pressure. As such, buyers are starting to gain control, as shown through a 100% surge in trading volume over the past day.

Source: Coinglass

Additionally, BONK’s OI-Weighted Funding Rate has turned positive after remaining negative for most of the past week. This shift showed a change in market sentiment among investors as they started to take long positions.

A higher demand for the long position than a short position suggested that investors were confident in the memecoin’s prospects.

Source: Coinglass

Finally, BONK’s liquidation for long positions has continually declined from a high of $767.6k to $8.72k at press time.

This decline suggested that even during market downturns, longs have been paying a fee to hold their position. Such market behavior implies that long-term investors are optimistic about the memecoin’s direction.

Read Bonk’s [BONK] Price Prediction 2024–2025

With buyers now dominating the market, the memecoin is positioned for further gains.

Thus, in the short term, BONK will attempt a $0.00002524 resistance level. A breakout from this level will strengthen the memecoin to reclaim July levels around $0.00002815.