Key Points
- In the last 24 hours, BONK’s price moved up by 12% to reach $0.000026.
- There was an increase in trading volume which went up by 67% to hit $522 million.
- The activity of Open Interest and derivative trading rose as well. Negative funding rates suggest that futures traders have reservations.
Resultantly, Bonk, a popular Solana meme coin has witnessed significant growth within twenty-four hours.
This cryptocurrency increased by 12% when it was priced at $0.000026; therefore ranking it as the most profitable among the cryptocurrencies during this period.
Moreover, there was a noteworthy increase in its trading volume which stood at about $522 million thus making it rise by around +67 percent according to CoinMarketCap data.
CRYPTO BREAKING NEWS
Assessing if BONK can rally past $0.000026 in July. BONK’s Parabolic SAR suggests a possible price uptick as bullish bias toward the memecoin rises. check us out @ https://t.co/8dh137aX4R pic.twitter.com/9MOArhSc0n— InnovatekMobile (@Neome_com) July 10, 2024
Increase in Derivative Trading and Open Interest
BONK’s sharp price rise has also caused notable volumes in derivatives markets. For now, the trade amount in this market is already equal to $206 million which is 77% higher than one day ago.
Besides, Coinglass informs that Bonk’s Open Interest which measures the total number of outstanding derivative contracts on it increased by +24%.
Open interest is key in determining active positions in a market while higher prices often demonstrate more open interest. In combination with an appreciating asset value such increasing open positions could be seen as strong uptrend signals.
This trend depicts new traders willing to buy into new positions showing growing attention towards BONK.
However, Futures Traders Show some Doubts
For example, at press time BONK Funding Rate across different crypto exchanges appeared negative at -0.02%. A negative Funding Rate indicates that many Futures traders are opting for short positions, anticipating a price decline that follows from their expectations. For instance, this is in contrast with the optimism expressed by traders operating on an over-the-counter basis.
To ensure that the price of the futures contract and the spot market asset are aligned, funding rates are important in perpetual futures contracts. Hence, a negative Funding Rate implies that more traders expect prices to fall, rather than rise which symbolizes bearish sentiments among these traders.
Bullish Sentiment in Spot Market
In apparent contradiction to the latter caution in the case of the futures market bullish sentiment towards BONK is gradually becoming widespread. In this context, it is noteworthy that for the first time since July 4th, such sign was observed.
Therefore as shown by the indicator’s dots located below BONK’s price line they seem to be rising indicating the continuation of the price growth at least for some time to come.
Parabolic SAR is a technical analysis tool commonly used for identifying potential trend directions and reversals; its points lying underneath asset prices indicate upward-directed markets hence achieving higher prices.
What lies ahead for BONK?
BONK value could rally to $0.000027 if it follows the current trajectory nevertheless it would be unwise not to take into account increased selling pressure that can bring its price up to $0.000024.
