Solana meme coin Bonk (BONK) price rallied more than 30% in the last two days, backed by a robust increase in trading volumes amid the broader crypto market recovery that saw Bitcoin briefly surpassing the $48,000 level.

Why Bonk Price Rally May End Soon

Bonk price has been moving range-bound along with profit booking in Solana in January and a breakout in BONK price failed after the Solana outage. The momentum continued in BONK price as it rebounded from the strong support level around $0.0000098, with a massive rise in trading volumes.

Source: TradingView

BONK saw a clear breakout above the long-running descending channel since December. The breakout has caught the attention of several high-profile traders, who now predict a potential further rise in its value. Bonk holders are also bullish due to a number of other reasons.

Other indicators including Bollinger bands and RSI supported a confirmed bullish price action. The rally may not sustain for long due to profit booking by investors.

Traders have started booking profits on BONK and 1000BONK. After massive shorts liquidations due to broader crypto market recovery, longs are liquidated in large numbers. This indicates a pullback or a reversal in BONK price.

BONK price currently trades at $0.0000128, paring some earlier gains as expected. The 24-hour low and high are $0.00001107 and $0.00001363, respectively. Furthermore, the trading volume has increased by 330% in the last 24 hours, indicating interest among traders.

Also Read: Can BONK Reach $0.000033 After Its Recent 15% Jump?

Other Reasons Behind the Recent Rally

Bonk announced that it is BONKrewards by Armada. It said Bonk holders will earn rewards from Community built BONK Eco products like BonkBot, SVB, and BONKswap.

“Success of participating BONK Ecosystem Products = more rewards for users who Lock their BONK, with boosted rewards from the pool for users opting to Lock longer!” added Bonk.

BONKsquares, validator addition, and Bonk Art were some recent developments for the meme coin. Bonk market cap rises over $850 million today.

Also Read: Bitcoin ETF Records Second-Largest Net Inflow of $542 Million

 

The post Bonk Price Soars 30%, Here’s Why Rally Could End Soon appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am