The price of the Solana meme coin Bonk (BONK) has surged by over 30% in the last two days, riding on the wave of a broader crypto market recovery. This rally was supported by a significant increase in trading volumes, coinciding with Bitcoin’s brief surge past the $48,000 mark.
Despite the recent surge, traders have begun booking profits on both BONK and 1000BONK, leading to a pullback in prices. Bonk’s price movement has been largely range-bound, with the momentum initially fueled by profit booking in Solana during January. However, a breakout in the token price failed to materialize following a Solana outage, dampening the rally’s sustainability.
Technical Analysis and Profit Booking
The recent surge in BONK saw a breakout above a long-running descending channel since December, catching the attention of high-profile traders. However, indicators such as Bollinger bands and RSI supported a confirmed bullish price action. Despite this, profit booking by investors is expected to curtail the rally in the near term.
Current Status and Trading Volume Surge
As of now, BONK is trading at $0.0000128, slightly retracing from earlier highs. The 24-hour trading volume has surged by 330%, indicating heightened interest among traders. However, the price range has seen fluctuations, with the 24-hour low and high recorded at $0.00001107 and $0.00001363, respectively.
Other Factors Driving the Rally
Apart from the broader market recovery, several developments within the Bonk ecosystem have contributed to the recent rally. Bonk announced the introduction of BONKrewards by Armada, allowing holders to earn rewards from community-built products like BonkBot, SVB, and BONKswap. Moreover, recent developments such as BONKsquares, validator addition, and Bonk Art have also fueled investor sentiment, leading to a rise in Bonk’s market cap, which currently stands at over $850 million.