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BONK Price Set to Face Consolidation Following 50% Rally

2 mins
Updated by Ryan James
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In Brief

  • BONK's price is attempting to breach a key barrier that would boost BONK and establish a new 2024 high.
  • However, investors' mixed signals could cause consolidation, with Open Interest dropping by 20% in a week.
  • On the other hand, the existing contracts in the Futures market are primarily long, as evidenced by the funding rate.
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BONK’s price is enjoying the bullishness of the broader market cues, but despite the massive rise, the future appears not so bright.

This is because the investors are exhibiting mixed signals at the moment, which could lead to a neutral-bearish outcome.

Bonk Investors Seem Unsure

BONK price is poised to witness a contraction as investors show slight bearishness. This can be seen in the money being pulled out of the Futures market, evidenced in the Open Interest.

Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. BONK’s open interest dropped by 20% in five days from $13.8 million to $11.1 million.

This $2.7 million decline shows investors are not keen on trading BONK, a bearish sign for the altcoin.

BONK Open Interest.
BONK Open Interest. Source: Coinglass

However, investors still hope for a rally despite money being pulled out of the Futures market. Their faith in the rise is evident in the still positive funding rate.

The funding rate is the periodic payment between long and short positions in a perpetual futures contract to maintain its price close to the underlying asset’s value. It reflects the balance of buying and selling pressure in the market.

Read More: Bonk Airdrop Eligibility: Who Can Claim and How?

BONK Funding Rate.
BONK Funding Rate. Source: Coinglass

The negative funding rate suggests that short contracts dominate the market, while long contracts hint at positive ones taking precedence. Such is the case with BONK, which could also counter the bearishness from the declining open interest.

BONK Price Prediction: Sideways Is the New Uptrend

The BONK price, trading at $0.00003783, is slightly above the key resistance of $0.00003769. This is the closing price of the previous 2024 high when BONK reached $0.00004800 during the intra-day trading hours.

However, a close above this resistance is unlikely. Secondly, the above-mentioned factors might reduce the bullishness in the market, which could result in a consolidation. BONK could witness sideways movement between $0.00003769 and $0.00002811.

Read More: Best Upcoming Airdrops in 2024

BONK Price Analysis.
BONK Price Analysis. Source: TradingView

On the other hand, if either of the limits is breached, the neutral-bearish thesis would be invalidated. A breakout may push the BONK price to $0.00004500 and above, while a breakdown may bring the meme coin down to $0.00002200. 

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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
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