BONK Price Analysis: Leveraged Traders Pivot to Bullish Positions
After experiencing its largest drop on Monday, August 5th, BONK price plummeted to $0.000015, resulting in a significant reduction in leverage positions. However, recent data suggests that futures traders are quickly recovering from this event, with a shift towards bullish positions. Let’s delve into the reasons behind these changes and what to expect from BONK moving forward.
Bonk Leveraged Traders’ Pivot to Bullish Positions
One key indicator that provides insights into a trader’s position is the funding ratio. This metric, which reflects the cost of holding a position in the market indefinitely, serves as a gauge of investor expectations. A positive funding ratio indicates that long positions pay fees to short positions, signaling a bullish sentiment. On the other hand, negative funding rates suggest a bearish outlook, with short sellers paying fees to long positions.
Currently, the funding situation has turned positive for BONK, as depicted in the chart below. This shift indicates that traders in the futures market are anticipating further price increases and aiming to profit from the upward momentum.
If the price of BONK continues to rise while funding remains positive, traders can expect higher returns on their positions. However, sustained buying pressure in the spot market is essential for this scenario to materialize.
In addition to futures traders, sentiment towards meme coins like BONK is also evolving. According to Santiment, the weighted sentiment for BONK has transitioned from negative to positive, reflecting a growing optimism among market participants.
BONK Price Prediction: Bullish Pattern Continues
Examining the daily chart of BONK at $0.000021 reveals the formation of a cup-and-handle pattern, a bullish continuation pattern typically seen after a downtrend. As illustrated in the chart below, a breakout from the downtrend signals a continuation of the bullish trend, with a potential price target of $0.000025 in the near term.
If BONK manages to surpass this level, it could reach the overhead resistance at $0.000029. Traders should monitor the relative strength index (RSI) to gauge momentum, as a move above the neutral line would confirm the bullish outlook. However, failure to breach the 50.00 level could result in BONK trading within a range of $0.000019 to $0.000021.
Overall, a positive funding ratio and improving sentiment indicate a bullish trajectory for BONK. If the technical indicators align with the market sentiment, the coin could see substantial price gains in the coming days.
