BONK market cap surges past $2B, but traders need to be careful

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BONK’s market cap witnessed massive growth as interest in the memecoin sector grew.
Overall Open Interest in grew, however, short positions increased.

Bonk [BONK] witnessed a massive surge in market cap over the last few days as overall interest in the memecoin sector grew.

BONK sees green

Over the last 24 hours, BONK’s market cap grew by 7%, and it reclaimed the $2 billion market cap level. At press time, the memecoin was trading at $0.00002811, with its price having grown by 6.11%.

After hitting the $0.00004474 level on the 27th of May, the price of BONK fell considerably, along with other memecoins.

Even though a bearish trend was established, recent bullish momentum has helped not only break this trend, but a possibility of a reversal has also emerged.

If momentum continues to be on the bull’s side, the memecoin could aim for the $0.00003654 level next.

Notably, the RSI (Relative Strength Index) grew to 67.74 over the last few days. The CMF (Chaikin Money Flow) also surged materially, implying that the money flowing into BONK had grown.

Source: Trading View

Word on the street

Another factor that could impact BONK would be its performance in the social sector. AMBCrypto’s analysis of Santiment’s data indicated that Social Volume had decreased. This can have a negative impact on prices, going forward.

Coupled with that, Weighted Sentiment also fell. This meant that the number of negative comments around the memecoin had surpassed the positive ones of late.

If this trend continues, the price of BONK may not be able to rally further and a possible correction could be on the horizon.