Bonk (BONK), the famed meme coin of the Solana ecosystem, recently noted a massive rally in the span of four days.
The BONK holders became active again, which might drive the meme coin further upwards.
Rally Gives Investors a Bonk
Bonk’s price has largely been wedged in a downtrend, bringing the coin down below $0.000024 in the last couple of days. This will likely change as the bears could take a step back following the recent losses.
Short positions worth over $2 million were liquidated in the last four days. As the prices rose, the short contracts anticipating a further decline in altcoin’s value were settled and sold off.
This will keep bears away from placing more bets against Bonk’s price rise. Looking at their behavior, it seems like BONK holders have already incorporated this into their actions.
Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide
Bonk Liquidations. Source: Coinglass
The Funding rate of Bonk, which has been negative for nearly the entirety of the past month, has turned positive. This funding rate refers to the fee paid by one trading party to another in perpetual futures contracts, helping to balance market demand. It’s aimed at incentivizing traders to maintain the contract’s value close to the spot price.
Bonk Funding Rate. Source: Coinglass
Positive rates hint at long contracts dominating the Futures market, while negative rates suggest short contracts are taking precedence. Thus, in the case of Bonk, the resurgence of positive rates signals a rise in prices.
Bonk Price Prediction: Golden Cross Rally on the Way
Bonk’s price noted an 80% rally in the span of four days and is looking to gain more based on two factors. The first was the aforementioned shift in investor behavior, and the second was the formation of the Golden Cross.
The Golden Cross, a bullish signal in technical analysis, occurs when a short-term 50-day Exponential Moving Average (EMA) surpasses a long-term 200-day EMA, suggesting potential upward market momentum.
BONK/USDT 4-hourchart. Source: TradingView
This would help the meme coin breach the resistance marked at $0.0000284, providing the necessary boost to rally beyond $0.00003.
Read More: 11 Best Solana Meme Coins to Watch in 2024
However, if bearish market cues dominate the meme coin, Bonk’s price could fall to $0.00002153. Losing this would invalidate the bullish thesis, again sending BONK below $0.00002.
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