Bonk (BONK), the second-largest memecoin on the Solana platform by market cap, is on track to continue its recovery, rising about 73% from a low of $0.00001247 on April 22, reaching an intraday high of $0.00002167 on April 28.
At the moment, BONK is currently trading at $0.00001923, up 3% in the past 24 hours and 60% over the past seven days.
BONK's trading volume has increased by 98% in the past 24 hours, reaching $478 million, while its market cap also increased, hitting $1.7 billion on April 28, before dropping to its current level of $,.5 billion at this time.
Let's analyze the factors that have driven BONK's price momentum over the past week.
Memecoins are experiencing a strong recovery
BONK's price increase over the past seven days reflects a trend across the entire cryptocurrency market, particularly in the memecoin sector. Most memecoins have recorded double-digit increases in the past week. Leading memecoins DOGE and Shiba Inu have increased by 3% and 5%, respectively, over the past seven days.
Official Trump (TRUMP), the memecoin related to former US President Donald Trump, has recorded a weekly increase of 73%, while Brett (BRETT) from Base has increased by 83% during the same period.
According to data from CoinMarketCap, this price surge has pushed the total market cap of memecoins to $55.51 billion, an increase of 17.5% over the past week.
Over $7.96 billion in memecoin trading volume has been recorded in the past week, representing an 85% weekly change. This recovery is driven by investors once again embracing risky assets like memecoins.
Open interest increases support BONK's upward momentum
BONK's price increase over the past seven days follows a significant rise in its open interest (OI).
The total open interest of BONK across all exchanges has increased by 290% from $11 million on April 22 to $43.2 million on April 26. Although this figure has dropped to $28 million at the time of writing, it is still significantly higher than in December 2024.
The increase in open interest reflects the growing participation of traders in BONK futures contracts, indicating increased speculative activity.
Data from CoinGlass shows high demand for Long positions in BONK over the past few days, indicated by the funding rate of futures contracts weighted by OI.
An increasing funding rate often suggests that futures traders are optimistic, expecting prices to rise in the future, which could signal that the upward trend will continue.
BONK's Social Dominance index remains high, rising from 0.091% to 0.572% from April 20 to April 26, indicating strong social activity driven by excitement in the BONK ecosystem.
The increase in chatter on social media platforms reflects growing interest from retail and institutional investors, amplifying FOMO and driving demand.
BONK breaks long-term downtrend
On April 13, BONK's price broke through a descending parallel channel, triggering strength that reversed the 50-day and 100-day exponential moving averages (EMA) to become support levels.
Bulls are likely to continue recovering towards the important resistance level at $0.00002410 (200-day SMA) in the short term. A daily candle closing above this level, accompanied by high volume, could push BONK up to the high range of January 19 near $0.000040. This would represent a 104% increase from the current price.
The significant rise in the relative strength index and its position at 71 in the overbought zone reinforces buyers' dominance in the market.
However, the overbought conditions may lead to profit-taking, resulting in a slight correction before BONK continues its upward trend.
"$BONK has broken the downtrend line. Expecting a double increase in the coming days," prominent analyst World of Charts stated in a post on April 28 on X.
Meanwhile, Crypto Joe has detected BONK breaking a bullish flag in the 30-minute timeframe, targeting $0.00002690.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.