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Bonk Price Could Hit a Wall Before Setting a New All-Time High

2 mins
Updated by Ryan Boltman
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In Brief

  • Bonk's price rose by 27% in the last 24 hours, inching close to breaching a key resistance level.
  • The RSI shows the meme coin is on the verge of being overbought and would enter the zone upon further gains.
  • BONK holders are betting on a further rise in the meme coin's price as the funding rate reaches a multi-week high.
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Bonk’s price made a mark this week by capitalizing on the broader market’s bullishness, inching closer to the all-time high.

While the investors are pushing for a rise, they might encounter some resistance if the price continues to rise.

Bonk Investors Bet on Gains

Bonk’s price is observing the impact of the rising market’s growth and BONK holders’ optimism. The latter is evident in the funding rate of the meme coin, which has hit a two-and-a-half-month high.

The funding rate is a periodic payment made between traders in a futures market to keep the price of the futures contract close to the underlying asset’s price. Generally, a positive funding rate suggests the futures market is observing a dominance of long contracts. A negative rate, on the other hand, suggests that short contracts are the traders’ choice.

Presently, the high funding rate is proof that BONK holders are betting on a price rise. How much this would reflect in the asset is another matter.

BONK Funding Rate.
BONK Funding Rate. Source: Coinglass

This is because the Relative Strength Index (RSI) is at the cusp of entering the overbought zone. The RSI is a technical analysis tool that assesses the magnitude of recent price changes to evaluate overbought or oversold conditions in a market.

RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and below 30 indicating oversold conditions.

There has only been one other instance of the RSI entering the overbought zone in the past. This was back in March when Bonk’s price hit an all-time high of $0.00004800 but closed at $0.00003769.

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BONK RSI. Source: TradingView

This was followed by corrections as the market cooled down after the rise.

BONK Price Prediction: Rising a Bit More

Bonk’s price pushed through the resistance at $0.00002840 and is close to breaching $0.00003392. This barrier has been difficult to break in the past, but a rise above it could propel BONK to $0.00003769. 

Bonk last closed at this point when it noted intra-day highs of $0.00004800. Looking at the aforementioned factors, a rise to this point is possible, but this is as far as the rally goes. 

Since RSI is already nearly overbought, the increase will be stopped before BONK goes any further.

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

Bonk Price Analysis.
Bonk Price Analysis. Source: TradingView

However, if the breach of $0.00003392 fails, Bonk’s price could fall back to $0.00002840. Losing this support could wipe out half the recent gains, sending the meme coin to $0.0000 2500 and invalidating the bullish thesis.

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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.

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...