Despite the previously pessimistic outlook, the rising social dominance and volatility suggest higher value. The RSI on the 4-hour chart indicates a temporary dip to $0.000021.
Over the past seven days, the price of one of Solana’s most popular memes, Bonk, has risen by 14.02%. At the time of writing, the Bonk’s asking price is $0.000023.
A few weeks ago, the token’s value fell below the support level of $0.000020 due to some market participants predicting a bearish target for the Bonk price. However, the increasing trading volume in the past 24 hours indicates a growing interest in cryptocurrencies.
Furthermore, it is important to note that an increase in volume is not a prerequisite for a price increase. Most of the time, it also depends on the direction of the price. If both volume and price increase simultaneously, the value may continue to rise.
Downward but not outward
However, in the case of price decline and decreasing trading volume, the downward trend may intensify. In order to determine the price prediction for Bonk, AMBCrypto examined the volatility.
For meme coins, volatility is like an additional feature compared to regular cryptocurrencies. This is because prices can skyrocket within a short period of time. It can also plummet in the blink of an eye.
According to Santiment’s data, Bonk’s daily volatility reached a significant high on June 27th. However, although the index has decreased at the time of writing, it still suggests that short-term rapid fluctuations are possible.
If buying pressure increases, Bonk may recover and target $0.000025 again. However, if token holders decide to profit from the recent rally, its value may drop to $0.000022.
In addition to volatility, social dominance is also a rising indicator. This indicator is crucial for price predictions of Bonk as it provides insights into the project’s discussion rate.
Historically, data shows that an increase in social dominance may foreshadow a price increase. But when it becomes too high, it signifies that FOMO has already begun.
As a new month approaches, a rebound for Bonk is imminent
FOMO stands for “fear of missing out.” It is a term used to describe the rush of buy orders when token prices rise.
Most of the time, those who enter late either make minimal profits or suffer losses due to potential price adjustments shortly after.
At the time of writing, Bonk’s social dominance has risen to 0.034%. If the reading continues to climb, demand for Bonk may increase.
If this happens, Bonk may recover from its recent slump. However, this price prediction does not imply that the meme coin will surpass its all-time high in July.
To achieve this, buying pressure must resemble that of March. From a technical standpoint, AMBCrypto examined the 4-hour chart, which suggests that Bonk may first experience a decline.
This is evident in the Relative Strength Index (RSI). RSI measures the momentum of cryptocurrencies, which can be bullish (upward trend) or bearish (downward trend).
At the time of writing, the RSI on the Bonk/USD chart is trending downwards, indicating a weakening buying momentum. Therefore, the price prediction may slide to $0.000021.
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The Fibonacci retracement indicator represents resistance and support levels, providing insights for predictions.
Based on our analysis, if Bonk stays above the midpoint of 50.00 on the RSI, it may rebound to $0.000030 in July.