- BONK’s Open Rates of interest and capital inflows within the futures market surged to file ranges
- Though the surge is bullish for BONK’s worth, BTC losses might have an effect on additional upswing.
Bonk [BONK], a Solana [SOL] homegrown meme coin, was up 20% on the weekly worth charts. It was buying and selling at $0.00004095, about 17% from its file all-time excessive of $0.00004770 on the 4th of March.
A transfer above the ATH will successfully push BONK into worth discovery, i.e., into new worth territory by no means hit earlier than.
In such a situation, a crypto dealer, Ninja Scalp, projected that BONK might explode primarily based on the same section in early March.
“$BONK – final time the canine coin entered worth discovery in March, a spike in quantity occurred on the Solana blockchain shortly after, with ~$2b quantity each day. Will historical past repeat itself?”
It’s price noting that historic knowledge doesn’t dictate future outcomes.
Nonetheless, BONK noticed large shopping for on-chain quantity and overwhelming optimistic market sentiment, as proven by the Quantity (marked white) and Weighted Sentiment (marked crimson).
This underscored BONK’s bullish set-up.
Supply: Santiment
Curiously, Ninja Scalp’s assertion on Open Curiosity (OI) surge throughout worth discovery was taking part in out as of press time. For the unfamiliar, OI tracks capital inflows and general sentiment within the futures market.
At press time, BONK’s OI hit a file of $24 million, in comparison with the $20 million hit in early March’s worth discovery.
The surge in OI instructed that BONK noticed large capital inflows not too long ago, a bullish sentiment within the futures market.
Supply: Coinglass
Nonetheless, liquidity maps confirmed appreciable liquidation ranges targeting the decrease aspect of worth motion, particularly round $0.000035 and $0.000040 (ranges marked by orange).
Supply: Coinglass
Usually, worth motion tends to maneuver in direction of excessive liquidity ranges (orange). If such a situation performs out, the BONK worth might ease to $0.000040 or $0.000035 earlier than transferring ahead to $0.000045.
On the worth charts, the above liquidity clusters aligned with 23.6% and 38.6% Fib ranges.
Supply: BONK/USDT, TradingView
So, BONK might see extra good points if bulls defend the 23.6% Fib stage, with speedy targets on the earlier ATH (0.000048) and $0.000056.
Nonetheless, regardless of the unimaginable shopping for stress, as proven by the bullish RSI (Relative Power Index) studying, the CMF hasn’t damaged above the common stage.
The final time BONK hit the worth discovery stage, CMF (Chaikin Cash Move) was above zero. So, the capital influx has up to now been nice, however CMF was beneath the March studying.
Reasonable or not, right here’s BONK’s market cap in SOL phrases
The truth is, BONK’s additional upside might be delayed if Bitcoin [BTC] fails to carry above the $67K stage.
As Ninja Scalp acknowledged, there’s been a substantial bounce in OI as BONK nears one other worth discovery. Nonetheless, the bullish momentum might be weakened if BTC information extra losses.