BONK [BONK] Market Cap Skyrockets 7% Reclaiming $2B Level, Will the Rally Continue?

Bonk [BONK] witnessed a massive surge in market cap over the last few days as overall interest in the memecoin sector grew.

Memecoin bonk [BONK] continued its rally last week, surging past the $2 billion market cap. However, a closer look at some key metrics suggested a possibility of a correction.

Here’s a quick analysis of BONK’s price action and some on-chain observations.

bonk [BONK] Price Analysis

After hitting a high of $0.00004474 on 27 May, BONK’s price took a hit, falling sharply. However, recent bullish momentum helped break this downtrend.

If the bulls continue to push, the memecoin could aim for the next resistance level at $0.00003654.

Interestingly, the RSI (Relative Strength Index) climbed to 67.74 over the last few days. Additionally, the Chaikin Money Flow (CMF) also surged, indicating more money flowing into BONK.

Social metrics and trader activity hint at a possible correction

AMBCrypto’s analysis of Santiment’s data showed that bonk’s Social Volume had decreased. This could have a negative impact on prices.

Moreover, Weighted Sentiment also fell, indicating that the number of negative comments around the memecoin had outpaced the positive ones recently.

If this trend continues, the price of BONK may not be able to rally further and a possible correction could be on the horizon.

In terms of trader activity, Open Interest in BONK had grown from $6.40 million to $10.07 million at press time.

However, most traders were bearish on the future of the memecoin. AMBCrypto’s analysis of Coinglass’ data showed that short positions around the token had spiked since 8 July.

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