Bonk Price Could Hit a Wall Before Setting a New All-Time High
Bonk’s price made a mark this week by capitalizing on the broader market’s bullishness, inching closer to the all-time high.
While the investors are pushing for a rise, they might encounter some resistance if the price continues to rise.
Bonk Investors Bet on Gains
Bonk’s price is observing the impact of the rising market’s growth and BONK holders’ optimism. The latter is evident in the funding rate of the meme coin, which has hit a two-and-a-half-month high.
The funding rate is a periodic payment made between traders in a futures market to keep the price of the futures contract close to the underlying asset’s price. Generally, a positive funding rate suggests the futures market is observing a dominance of long contracts. A negative rate, on the other hand, suggests that short contracts are the traders’ choice.
Presently, the high funding rate is proof that BONK holders are betting on a price rise. How much this would reflect in the asset is another matter.
This is because the Relative Strength Index ( RSI ) is at the cusp of entering the overbought zone. The RSI is a technical analysis tool that assesses the magnitude of recent price changes to evaluate overbought or oversold conditions in a market.
RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and below 30 indicating oversold conditions.
There has only been one other instance of the RSI entering the overbought zone in the past. This was back in March when Bonk’s price hit an all-time high of $0.00004800 but closed at $0.00003769.
Read More: Bonk Airdrop Eligibility: Who Can Claim and How?
This was followed by corrections as the market cooled down after the rise.
BONK Price Prediction: Rising a Bit More
Bonk’s price pushed through the resistance at $0.00002840 and is close to breaching $0.00003392. This barrier has been difficult to break in the past, but a rise above it could propel BONK to $0.00003769.
Bonk last closed at this point when it noted intra-day highs of $0.00004800. Looking at the aforementioned factors, a rise to this point is possible, but this is as far as the rally goes.
Since RSI is already nearly overbought, the increase will be stopped before BONK goes any further.
Read More: 11 Top Solana Meme Coins to Watch in May 2024
However, if the breach of $0.00003392 fails, Bonk’s price could fall back to $0.00002840. Losing this support could wipe out half the recent gains, sending the meme coin to $0.0000 2500 and invalidating the bullish thesis.
Trusted
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions , Privacy Policy , and Disclaimers have been updated.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP Shows Bullish Potential with Target of $2 as Investors Watch Resistance Breakouts
BlackRock’s Bitcoin ETF surges to $40 billion in assets in just 211 days
Pennsylvania lawmakers propose a bill to allow state investments in bitcoin