Bonk (BONK), the prominent meme coin, persists in following an upward trajectory within an ascending channel, even amid growing pessimism towards it in the market. Analyzing its essential indicators shows that there remains a consistent interest in the meme coin, notwithstanding some investors cashing out for profits.
Bonk Bears Pressurize Its Cost
As of the time of publication, BONK was trading at $0.000034. The value of the token has increased by 25% throughout the past month. An ascending channel formed as a result of this price increase, and on May 27, BONK made an attempt to close it above its upper line.
In the BONK market, some bearish activity has persisted despite the recovery. The bearish bias toward the altcoin is highlighted by the negative weighted sentiment that BONK has registered since May 30. BONK's weighted emotion was -0.79 at the time of publication.
A weighted sentiment score of less than zero for an asset means that there is generally negative internet discourse about it.
The pessimistic outlook is evident in the meme coin's futures market as well. Since the start of June, there has been a decrease in its futures open interest, now standing at $14.62 million, reflecting an 18% decline.
BONK's futures open interest indicates the total number of active futures contracts or positions that have not been closed or resolved. A decrease in this metric suggests reduced market participation as traders close their positions without initiating new ones.
Price Prediction for BONK: Bulls Continue to Have Momentum
Even though some traders have started selling their BONK tokens, bullishness is still quite noticeable in the meme coin market.
Its Relative Strength Index (RSI) readings indicated that purchasing momentum is greater than selling pressure. Currently, BONK's RSI is at 62.25.
This indicator calculates the price movement momentum of an asset. The asset is regarded as overbought and in need of a correction when it returns a value greater than 70. On the other hand, an RSI below 30 is seen as oversold, suggesting that the market may have dropped too far and is likely due for a recovery.
The bullish Elder-Ray Index for BONK further supports the bull's strength. The indicator was at 0.0000079, above the zero line, at the time of writing. The relationship between the strength of buyers and sellers in the market is measured by this indicator.
In the event that selling action is outweighed by purchasing pressure, BONK may break over the top line of its ascending channel at $0.000045 and continue its upward trajectory.
June 2024, Cryptoniteuae