- Bonk has surged by 8.03% over the past 24 hours.
- However, a decline in its social dominance signaled a potential pump until FOMO returns.
After reaching a high of $0.000059 following a sustained uptrend, Bonk [BONK] experienced a sharp decline to a low of $0.00003837.
However, since then, the memecoin has experienced a four-day consecutive uptrend, signaling a potential breakout. In fact, as of this writing, Bonk was trading at $0.00004648, an 8.03% increase on daily charts.
Over the same period, the memecoin’s trading volume increased by 109.84% to a record $1.01 billion.
Despite the price pump, Bonk remains approximately 20.79% below its ATH recorded 18 days ago.
With the recent gains, analysts are left deliberating over the memecoin’s trajectory. Inasmuch, Santiment analyst sees more gains, citing FOMO.
Market sentiment
In their analysis, Santiment posited that Bonk is set for more gains since there’s less attention from the crowd.
Source: Santiment
According to them, the memecoin will continue to experience pump until FOMO returns. As such, when the crowd gets greedy, large wallets sell and prices retrace shortly after.
Based on Santiment data, social dominance has declined from 1.53% to 0.27%. Usually, the market performs the opposite of the crowd’s expectations.
Thus, when investors pay less attention, prices pump and the reverse is true.
What BONK’s charts say
According to AMBCrypto’s analysis, Bonk was experiencing a strong upward momentum amidst increased buying pressure.
Source: TradingView
For starters, this momentum and buying pressure is evidenced by a bullish crossover on Bonk’s Relative Strength Index (RSI). Over the past 24 hours, the memecoin made this crossover, signaling buyers’ dominance.
The strength of the upward momentum was further evidenced by a sustained rise in the Relative Vigor Index (RVGI). When this rises, it shows that the current trend is strengthening and could continue.
Source: Coinglass
Additionally, Bonk’s Long/Short Ratio shows that longs are dominating the market. This means that most investors are bullish and are betting on the memecoin’s price to rise.
Source: Coinglass
With most investors taking long positions, Open Interest has also surged by 8.36% to $27 million. This implies that new investors are entering the market to take positions, anticipating prices to appreciate.
Read Bonk’s [BONK] Price Prediction 2024–2025
Simply put, Bonk is currently experiencing higher buying pressure, with active investors taking long positions.
Therefore, holding current factors constant, Bonk could reclaim $0.000050 levels. A breakout from here will see the memecoin hit $0.000054. Consequently, a market correction will see Bonk dip to $0.00004211.
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