Bonk Price Soars 30%, Here’s Why Rally Could End Soon
The price of the Solana meme coin Bonk (BONK) has surged more than 30% in the past two days, driven by increased trading volumes during the broader crypto market recovery. However, there are indications that this rally may not last for long.
Range-bound Movement and Breakout
Bonk price has been moving within a range, influenced by profit booking in Solana and a failed breakout after the Solana outage. Despite these challenges, BONK rebounded from a strong support level and experienced a significant increase in trading volumes.
Positive Indicators and Potential Rise
BONK recently broke out of a long-running descending channel since December, attracting the attention of high-profile traders who anticipate further price growth. Additionally, other indicators such as Bollinger bands and RSI support a bullish price action. However, profit booking by investors could impact the sustainability of the rally.
Profit Booking and Possible Reversal
Traders have started booking profits on BONK and 1000BONK, leading to liquidations of long positions. This suggests a potential pullback or reversal in BONK price.
Current Price and Trading Volume
At present, BONK is trading at $0.0000128, experiencing a slight decrease from its earlier gains. The 24-hour low and high are $0.00001107 and $0.00001363 respectively. Trading volume has also seen a significant increase of 330% in the past 24 hours.
Additional Factors Contributing to the Rally
Bonk recently announced BONKrewards by Armada, where Bonk holders can earn rewards from community-built BONK Eco products. Developments such as BONKsquares, validator addition, and Bonk Art have also contributed to the market cap of Bonk reaching over $850 million.
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