The start and end of 2023 were vastly different for the Solana network and its token, SOL. After hitting rock bottom following the FTX events, SOL later saw a recovery. A significant driver of this recovery was the smartphone SAGA and the accompanying BONK airdrop, which energized the market and led to substantial gains. But what is happening with BONK now?
BONK Comments and Expectations
Currently, BONK’s price appears to be on an upward trajectory due to recent investor activities. This could help it recover from last month’s price drop, which followed a 50% correction. A notable change has occurred: BONK’s funding rate shifted from negative to positive over an 11-day period. This indicates a strengthening of long positions, a reversal from the previous short dominance.
With the positive funding rate on the rise, investor optimism towards the cryptocurrency has increased. These positions taken by investors could prompt a price surge for BONK in the near future. Simultaneously, the correlation between BONK and Bitcoin has reached a high of 0.94, suggesting that BONK’s price movements are closely following those of Bitcoin.
This strong correlation implies that any potential movement in Bitcoin’s price could similarly affect BONK. Stability and a potential rise in Bitcoin could propel the meme coin towards an upward price increase.
What Could Affect BONK’s Price?
BONK is currently trading at approximately $0.00002077, slightly below the $0.00002153 support level. If the altcoin rises above $0.00002500, it could reverse the 48% drop seen over the past month. Although the $0.00002748 price target might seem distant, investor support and an upward move in Bitcoin could push BONK to new levels.
Conversely, if the price falls below $0.00002000, it could drop to $0.00001500. If this support fails, BONK’s price might decline further to $0.00001375.
Concrete Investor Insights
Key inferences for investors considering BONK:
- Positive funding rates indicate increased optimism and potential for price growth.
- Strong correlation with Bitcoin suggests BONK could benefit from any BTC price stability or rise.
- Critical price levels to watch are $0.00002000 and $0.00002500 for potential support and resistance.
In summary, recent developments suggest that BONK might experience a price recovery influenced by investor sentiment and Bitcoin’s performance. Close monitoring of these factors could provide valuable insights for potential gains or risks.
