- Despite a previous bearish outlook, rising social dominance and volatility suggests a higher value.
- The RSI on the 4-hour chart indicates a brief decline toward $0.000021.
The price of Bonk [BONK], one of the top memecoins on Solana [SOL], increased by 14.02% within the last seven days. At press time, BONK changed hands at $0.000023.
Some weeks back, the token’s value slipped below $0.000020 support as some market participants placed the BONK price prediction at bearish targets. However, a rising volume in the last 24 hours indicated that interest in the cryptocurrency had improved.
Further, it is important to point out that a rise in volume is not a prerequisite for a price increase. Most times, it also depends on price direction. If volume increases alongside price, the value could continue to move higher.
Down but not out
But in a situation where price decreases and volume falls, the downtrend could intensify. To ascertain BONK’s price prediction, AMBCrypto looked at the volatility.
For memecoins , volatility is like an added feature when compared to regular cryptocurrencies. This is because prices can skyrocket within a short period. It can also plunge within the twinkle of an eye.
According to data from Santiment, BONK’s one-day volatility jumped to notable heights on the 27th of June. However, while the reading had dropped at press time, it still shows that rapid short-term movements looks possible.
Source: Santiment
Should buying pressure increase, BONK could recover and aim for $0.000025 again. However, if holders of the token decide to take gains off the recent hike, the value could drop to $0.000022.
Besides volatility, social dominance is one metric that also rose. This metric is crucial to BONK’s price prediction because it gives insights into the rate of discussion about a project.
Historically, data showed that rising social dominance could foreshadow higher prices. But when it gets too high, it means, FOMOÂ has set in.
BONK’s rebound near as new month approaches
FOMO stands for Fear Of Missing Out. It is a terminology used to describe an influx of buy orders when the price of a token has gained a lot.
Most times, those who get in later either make minimal profits or lose as prices might undergo a correction shortly afterward.
At press time, BONK’s social dominance had risen to 0.034%. Should the reading continue to climb, demand for BONK might increase.
If this happens, then BONK might recover from its recent downturn. However, this price prediction does not mean that the memecoin would surpass its all-time high in July.
Source: Santiment
For that to happen, buying pressure has to similar to what it was in March. From a technical perspective, AMBCrypto looked at the 4-hour chart which indicated that BONK might first decline.
This was evident in the Relative Strength Index (RSI). The RSI measures the momentum of a cryptocurrency. This could be either bullish (line up) or bearish (line down).
At press time, the RSI on the BONK/USD chart trended downwards, indicating that buying momentum was no longer strong. As such, the price prediction could be a downturn to $0.000021.
Source: TradingView
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The Fibonacci Retracement indicator, which indicates resistance and support levels, gave insights into the prediction.
From our analysis, if BONK does not drop below the RSI’s 50.00 midpoint, a rebound toward $0.000030 could be possible in July.
