Last week, technical analysis and on-chain analysis by BeInCrypto predicted that Bonk (BONK) was looking to reach $0.000025. But that wasn’t the end of it, as the meme coin went even further and exceeded expectations.
Amidst the recent surge, something else has happened, and a deeper analysis points to a surprising revelation.
Volatility Rise as Solana Meme Coin Outperforms FLOKI
According to CoinGecko, Bonk’s market cap was around $1.49 billion on July 1. Around the same time, another meme coin, Floki (FLOKI), had a market cap of $1.62 billion. Now things have changed, with BONK’s market cap at $1.73 billion while FLOKI’s value has dropped to $1.70.
The market cap can be correlated with the price performance of BONK, as market cap is the product of price and circulating supply. At the time of publication, the price is up 10.50% in the last 24 hours.
This is higher than FLOKI, which is up 3.58%. Following the price surge, Santiment data shows that volatility around BONK has spiked. Specifically, the on-chain analytics platform puts daily volatility at 0.042.
Volatility refers to how quickly prices move in a short period of time. If accompanied by buying pressure, high volatility can help a token’s value soar to incredible heights.
However, if the selling pressure is too intense during high volatility, the price may collapse in a flash. In the case of BONK, the price may continue to rise if buyers do not calm down.
BONK Price Prediction: Is the Corrective Phase Over?
Furthermore, the daily chart shows the formation of an inverse head and shoulders (H&S) pattern. Typically, a regular head and shoulders pattern shows three consecutive peaks. One in the middle (the head), and two are outside peaks (the shoulders) at each end.
If so, this would have marked the end of BONK’s uptrend as it is from bullish to bearish. However, since the pattern is reversed, it means that the trend is from bearish to bullish. Therefore, BONK price could reach $0.000031 if buyers decide to maintain the momentum.
Similarly, the Parabolic Stop and Reversal (SAR) indicator supports a potential uptrend. The Parabolic Stop and Reversal indicator is a technical tool used to predict the short-term momentum of a cryptocurrency.
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When the dotted line is below the price, it means that the price could reverse downward. But for the symbol, the dotted lines are below it. If this remains the case in the coming days, the meme coin’s bullishness may be validated.
Additionally, the Relative Strength Index (RSI) reading rose. The RSI measures momentum using the magnitude of price changes. When it rises, it means momentum is bullish, while when it falls, it indicates momentum is bearish.
The RSI on the daily chart of BONK stock is at 53.62, indicating that buyers are in control. If this continues, BONK stock will reach $0.000028 and then move to $0.000031.
However, the token will be overbought if the RSI reading reaches 70.00 or above. If this is the case, BONK could reverse to $0.000023.
Disclaimer
In accordance 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 providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms & Conditions, Privacy Policy and Disclaimer have been updated.