Solana-based memecoin Bonk (BONK), has ranked as the top gainer of the day among the top 100 cryptocurrencies by market cap. The coin has rallied more than 16% over the last 24 hours. On a broader timeframe, the surge has pushed BONK above a key resistance level with the coin now breaking out towards higher price levels.
Furthermore, the price rally of Bonk comes on a day where the general crypto market is buzzing with enthusiasm. Particularly, Bitcoin has climbed above $110,000 indicating renewed investor interest for cryptocurrencies.
BONK’s Over 16% Price Pump — What’s Fueling the Rally?
According to CoinMarketCap, the price of Bonk memecoin is sitting at $0.00001643 as of this writing. The current value represents a 16.36% surge over the last 24 hours. Earlier on the day, BONK peaked at $0.00001739, only to pull back to the current level.
This memecoin is also experiencing a boom in trading volume. Over the last 24 hours, the trading volume has risen by 369.43%. This is a sign of vibrant market activity as trading volume reaches $608.8 million, as of this writing.
BONK’s recent rally is largely driven by the enthusiasm in the market as investors speculate the possible launch of a leveraged BONK-based exchange traded fund (ETF). The enthusiasm stems from Tuttle Capital‘s recent resubmission of Form N-1A (amendment) of its proposed leveraged ETFS to the SEC. These leveraged ETFS include a 20X Long Bonk ETF amongst nine others.
Tuttle Capital’s filing claims that the BONK ETF could go live as early as July 16 which is only two weeks away. If approved, the ETF could drive significant inflows into the Solana-based memecoin.
Bonk Memecoin Netflow Pumps by 93% on the Day
Amid the speculation, investors have already started to pump capital into Bonk. According to data by Coinglass, the total netflow for the memecoin is $1.65 million as of this writing. The netflow has climbed from $108.78K recorded yesterday. This marks a 93.40% surge on the day.
Spot net inflow monitors capital inflow into an asset via direct purchases, signifying increasing investor interest, and demand. Increase in the spot net inflows on an asset indicates a bullish sentiment in the market.
The increase in Bonk’s netflow thus indicates that investors are increasingly confident in the asset amid Bonk ETF optimism. This may create an upward price pressure on the asset as more capital inflows into the market.
Break Out Above 20-Day EMA Renews Bullish Momentum
Following the recent price action, Bonk memecoin has surged past the 20-day exponential moving average (EMA) as per the BONK/USDT daily chart on TradingView. This level, which now sits at $0.00001463, now acts as a crucial support for the memecoin.
The 20-Day EMA computes the average price of an asset in the last 20 trading days, providing more weight to the recent prices. When the price of an asset trades above its 20-day EMA, this is usually interpreted to show short-term bullish momentum and possible upside price movement.
In Bonk’s case, if the price continues upwards, immediate resistance sits at $0.00001677. Converting this level into support could push the memecoin to the resistance at $0.00001849, corresponding with the 50% Fibonacci retracement.
However, if BONK memecoin fails to clear key resistance levels, and the price drops below the 20-Day EMA, the memecoin could dip towards the next resistance at $0.00001117. If this happens, it will invalidate the bullish momentum.
