CoinWorld reports:
Historical data, combined with recent trends, support the idea of a resurgence in BONK prices. Rising buying pressure on the charts suggests that prices may revisit 0.000025 USD.
After experiencing a majority of bearish sentiment throughout this week, the price of Bonk surged by 15% at the beginning of the weekend. As of the time of writing, BONK is valued at 0.000022 USD on the charts, showing a significant increase from its drop to 0.000018 USD on July 5.
But that’s not all; according to AMBCrypto’s analysis, the price of meme coins is likely to continue rising similarly. One reason for this prediction is the token’s social dominance.
A challenging week leads to a better weekend.
According to Santiment’s data, BONK’s social dominance has risen to 0.303%. Social dominance measures the share of discussions about an asset in all cryptocurrency conversations on social media platforms.
When it increases, it signifies an improvement in online discussions. BONK is just the case. However, a fall indicates another story altogether.
Historically, there is a correlation between social dominance and asset prices. For example, on-chain data shows that whenever online discussions about BONK increase, the price follows suit.
As shown in the chart below, this pattern has occurred several times, including on April 20, May 20, and June 24. If the past patterns hold true, the token’s value could reach 0.000024 USD in the short term.
Although there is a correlation between these indicators, it is worth noting that if discussions become too heated, it could mean a peak in local prices.
Evidence of this can be seen in the charts, where a very high social dominance foreshadows a price decline. Therefore, if BONK’s price continues to rise, and social dominance becomes overheated, it may face another downward trend.
Bonus up to $0.000024?
Furthermore, we observe a significant increase in the meme coin’s daily volatility. The rise in volatility can be interpreted as proof of rapid price gains capturing the market.
If buying pressure on BONK increases, accompanied by high volatility, a surge to $0.000024 could be validated. Conversely, if volatility continues to decrease, the token may trade sideways on the charts.
Therefore, it is necessary to assess potential price targets from a technical standpoint.
For instance, based on the 4-hour chart, the Awesome Oscillator (AO) is in negative territory. Here, AO is a sign of momentum. When it is positive, it indicates a bullish momentum. However, negativity suggests a bearish momentum. For BONK, despite AO being negative, it flickers with green histogram bars.
This indicates that bulls are trying to confirm an upward trend.
Finally, the rising On-Balance Volume (OBV) suggests that buying pressure is also on the rise. If this continues, the altcoin’s price may climb above 0.000024 USD on the charts.
Read Bang’s price forecast for 2024-2025.
If this holds true, based on Solana’s meme coin, the price may reach $0.000026. However, if bears reject this move, prices may drop back to $0.000019.