Bonk Price Prediction as Open Interest Falls by $8 Million – Will BONK Recover?
June 2, 2024
BONK’s recent price decline has led to a significant drop in investor confidence, reflected in the asset’s Open Interest (OI). OI fell from $24 million to $16 million, slightly recovering to $17.27 million.
Despite a positive funding rate favoring long contracts, the sharp decrease in OI suggests bearish sentiment. This downturn in investor confidence could result in further price decreases if it persists.
Current price analysis places BONK at $0.00003323, with technical indicators pointing to potential key support and resistance levels.
BONK Investors Losing Confidence as Open Interest Drops
BONK’s price decline is impacting investor confidence, evident in the asset’s Open Interest (OI). OI fell by $8 million, decreasing from $24 million to $16 million on Saturday.
However, it slightly recovered to $17.27 million on Sunday, reflecting a 0.09% increase.
BONK Derivatives Data Analysis
Although the funding rate remains positive, indicating a dominance of long contracts, the significant drop in OI suggests a bearish sentiment for BONK.
This decline in OI could lead to further price decreases if investor confidence does not improve.
Key Points:
Open Interest: Decreased by $8 million in 48 hours.
Current Open Interest: $16 million, and now to over 17 million
Funding Rate: Still positive, favouring long contracts.
What is Open Interest (OI) and What Does It Mean for You?
Open Interest (OI) refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled. It provides insight into an asset’s trading activity and liquidity.
A higher OI indicates more interest and participation in the market, while a lower OI suggests declining interest.
In the context of BONK, the recent drop in OI from $24 million to $16 million, despite a slight recovery to $17.27 million, indicates reduced investor confidence, which could negatively affect its price.
Bonk Price Prediction
The price of BONK is currently $0.00003323 on the 4-hour chart. The pivot point, marked by the green line, stands at $0.00003536.
Immediate resistance levels are identified at $0.00003802, $0.00004013, and $0.00004261, while immediate support is found at $0.00003240, followed by $0.00003014 and $0.00002787.
Bonk Price Prediction – Source: Tradingview
Technically, the Relative Strength Index (RSI) is at 39.79, indicating oversold conditions, and the 50-day Exponential Moving Average (50 EMA) is $0.00003482.
The upward trendline is supporting BONK near the $0.00003240 level, which is further reinforced by a double bottom pattern. This suggests a potential continuation of the uptrend if the price remains above $0.00003240.
In conclusion, consider buying BONK above $0.00003240, while a break below this level may signal a sell-off.
Alternative Meme Tokens for Big Rallies
BONK hasn’t been the strongest-performing meme coin this year, with many smaller-cap tokens outperforming it in recent months.
Traders looking for quick, significant gains might consider newer alternatives, including tokens in presales.
One promising token is PlayDoge (PLAY), an Ethereum-based cryptocurrency that recently opened its presale, raising $0.93 million of its $1.38 million goal.
PlayDoge’s appeal lies in its Doge-themed Tamagotchi-style game with crypto-enabled play-to-earn mechanics. Players can breed, trade, and take their virtual Shiba Inu dogs on missions, earning PLAY tokens with a max supply of 9.4 billion. The current presale price is $0.00501 per token.
Current Status: $0.93 million raised
Token Supply: 9.4 billion PLAY
More game details will emerge soon, but interested parties can participate in the presale on the PlayDoge website. Early investment is advantageous as the presale price increases with each stage, potentially leading to significant gains once the game launches and lists on exchanges.
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