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BONK’s Price Recovery Now Sits in the Hands of Bitcoin

2 mins
Updated by Daria Krasnova
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In Brief

  • Bullish investor actions could help BONK's price recover from a 50% correction experienced last month.
  • BONK's positive funding rates indicate increased investor confidence, reflecting a bullish market sentiment.
  • High correlation with Bitcoin (BTC) means BONK could benefit significantly from any Bitcoin price recovery.
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BONK’s price could be recovering owing to the bullish actions of investors observed over the last few days.

This could help the meme coin undo the damage done in the past month, which led to a 50% correction.

BONK Investors Appear Bullish

BONK’s price rise sits in the hands of its investors, who are changing their tune now. After more than 11 days, BONK’s funding rates have turned positive from negative. This shift suggests that long contracts are now dominating the market, as opposed to shorts’ domination noted during negative rates.

The positive funding rates imply that traders are willing to pay a premium to maintain their long positions. This indicates increased investor confidence in the altcoin’s upward potential, reflecting a bullish sentiment. This change can be a key driver for BONK’s price in the near term.

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

BONK Funding Rate.
BONK Funding Rate. Source: Coinglass

Additionally, BONK’s correlation with Bitcoin (BTC) is currently at a high of 0.94. This strong correlation means that the price movements of meme coins are closely aligned with those of BTC.

Given this high correlation, BONK’s price could benefit significantly from any Bitcoin price recovery. As BTC stabilizes and potentially rises, the meme coin will likely follow suit, potentially leading to gains for its investors.

BONK Correlation to Bitcoin.
BONK Correlation to Bitcoin. Source: TradingView

BONK Price Prediction: Climbing Back From Lows

BONK’s price, trading at $0.00002103, is at a three-month low at the time of writing, just below the support of $0.00002153. The meme coin’s 48% drawdown in almost a month could be reversed if the altcoin climbs back above $0.00002500. The target, however, is higher at $0.00002748 but would warrant BONK holders to continue to act bullish.

Read More: 11 Top Solana Meme Coins to Watch in June 2024

BONK Price Analysis.
BONK Price Analysis. Source: TradingView

Should this fail from happening, the meme coin could be vulnerable to a decline below $0.00002000, likely falling to $0.00001500. If this support is broken too, the BONK’s price would drop to 0.00001375 and invalidate the bullish thesis.

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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
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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