- BONK challenged Algorand and BSV in market cap.
- Regardless, the meme coin faced skepticism as sentiment took a downturn.
BONK [BONK], the meme coin that has been riding a rollercoaster in recent weeks, managed to defy expectations by surging in terms of market cap.
In the past 24 hours alone, BONK experienced an impressive price growth of 55.38% as well, underlining its volatile nature.
Source: CoinMarketCap
Looking at the price movement
Examining the specific price movements of BONK revealed a story of resilience. Breaking through the $0.00001788 resistance level, the meme coin nearly doubled in price on its journey to reach $0.00003423.
However, it faced resistance at the $0.00002596 level, which could potentially serve as a support level in the future, especially in the event of a price correction.
Technical indicators play a crucial role in understanding the potential impact on prices. The Relative Strength Index (RSI) was at 76.58, indicating that the coin may be in overbought territory.
While this could suggest a positive high momentum for the price, caution is warranted, as it also implies a potential correction.
In contrast, the Chaikin Money Flow (CMF) stood at 0.06 at press time, signaling weak buying pressure.
A low CMF could negatively impact the price, but strategic investors may interpret it as an opportunity to enter the market.
Source: Trading View
Social data
BONK’s sudden surge was not unnoticed on social media platforms, where overall interest in the meme coin witnessed a significant uptick.
This surge in social media attention could positively impact the price of BONK, as a spike in attention may drive the price even further up north.
However, the initial enthusiasm reflected in the Weighted Sentiment is showing signs of tapering off. A decline in sentiment could potentially harm BONK, suggesting a shift in community perception.
The increased volatility in BONK’s price is another noteworthy aspect.
While higher volatility can present trading opportunities, it also introduces risks for investors, as sharp price fluctuations can lead to unpredictable outcomes.
Source: Santiment
Realistic or not, here’s BONK’s market cap in BTC’s terms
Examining trader behavior, despite the surge in price, the persistence of relatively high short positions against BONK indicated that a segment of the market remains bearish on its prospects.
This lingering bearish sentiment could influence BONK’s future price movements.
Source: Coinglass
