STONK crypto surges 18% after Netflix pairing – Why $0.25 matters now
A new utility, trading volume, revenue, buyback and burns fuel STONK's massive rally.
STONK rallied more than 18% in the past 24 hours at press time, as the broader crypto market extended its uptrend.
STONK’s daily gains were ahead of Pump.fun [PUMP], its biggest competitor in the Solana [SOL] ecosystem. However, the launchpad continues to climb higher in the ranks of the top platforms by revenue in the Solana ecosystem.
Why is STONK crypto up today?
The trading volume of both the derivative and spot markets hit $229 million, up about 185% from the previous day. Derivatives account for the biggest spike in volume, about 113%, with Open Interest (OI) rising with it.
Stonk generated in excess of $1.163 million in daily revenue. Of this amount, more than $703K was spent on buying back 2.75 million STONK tokens. This amount was burned, representing 0.275% of the total supply.
As a result, about 1.30% of the token’s supply was burned over the past seven days.
Basically, STONK has bought back $17.37 million while burning a total of 189.92 million STONK, equivalent to $50.996 million.
Can the trendline support hold?
On the charts, STONK was trading around its highs, with price action respecting an ascending trendline support. Since mid-August, the token has bounced off this level five times, and now it is touching it for the sixth time.
However, it is still unclear if the zone at around $0.25 will hold for another bounce. Some altcoins like Zcash [ZEC] had broken a similar trendline support despite whale accumulation, hinting such a bounce was not guaranteed.
Further analysis showed capital leaving the ecosystem token as the Chaikin Money Flow (CMF) dropped from 0.14 to -0.23 as of writing. Notably, CMF was forming a double bottom that was yet to be confirmed, hinting the outflows could be about to end.
The Choppiness Index (CHOP) was also declining, indicating the trend was becoming stronger and clearer.
Therefore, losing this support and staying below it could see STONK retesting the demand zones at $0.15 or $0.10. On the contrary, the token could rally to $0.40, its all-time high (ATH).
Final Summary
- STONK crypto rallied over 18% in the past 24 hours after enabling users to launch tokens paired with Netflix.
- STONK price was trading above a slanting trendline support, and its reaction around this level could determine its next trajectory.
