BONK hits new all-time high following Upbit listing

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As a seasoned researcher with extensive experience in the cryptocurrency market, I find myself intrigued by the meteoric rise of Bonk (BONK). The surge in its price following its listing on Upbit and the upcoming token burn event have undeniably caught my attention.

Among the top 100 assets, BONK has soared to the top after a significant announcement made by the South Korean cryptocurrency exchange, Upbit.

On Wednesday, BONK, the initial meme token built on the Solana network, experienced an 18% increase, reaching a fresh peak of $0.000058. At the time of writing, its market capitalization exceeded $4.1 billion, allowing it to surpass Dogwifhat’s (WIF) market cap of $3.2 billion and once again claim the title as the largest meme coin on the Solana blockchain.

Why is BONK going up?

The increase in the altcoin’s price occurred at the same time as a surge in the future contracts open interest for the meme coin. As per data from CoinGlass, the open interest (OI) for BONK’s futures market peaked at a record high of $53.5 million, which is over 7 times its lowest point this month ($6.3 million), indicating a significant rise in investor demand.

As a researcher observing the cryptocurrency market, I recently noticed an uptick in the popularity of BONK following its listing on South Korea’s premier crypto exchange, Upbit. This event triggered a significant surge in BONK’s daily trading volume, reaching approximately 95% higher than usual, with figures exceeding $3.5 billion at the time of my analysis.

A significant reason behind the altcoin’s growth is that Bonk DAO has announced a large token burn of 1 trillion tokens, planned for Christmas Day. This move will decrease the overall number of tokens available, leading to an increase in scarcity.

Lately, it appears that whales have taken a keen interest in meme coins, with one of them investing a significant amount – 3.4 million USDC – to acquire 65.4 billion tokens of the latest meme coin, BONK. As per data from Lookonchain, this whale has a track record of profitable investments in meme coins. Additionally, last week, another whale made a purchase of 29.32 billion BONK tokens at approximately $0.0000387 each.

Purchasing whales often encourages retail investors’ trust in a particular asset, which might spark a sense of urgency or “FOMO” (Fear Of Missing Out) among individuals aiming for swift profits.

Bullish momentum to continue

As an analyst, I’ve been closely observing the BONK/USDT pair, and I must say, the past week has been quite intriguing. Despite a staggering surge of over 72%, BONK’s momentum doesn’t seem to be slowing down.

Given the current circumstances, it’s likely that the upward trend will persist for a while due to the dominance of buyers. Yet, the Relative Strength Index indicates a value of 82, suggesting strong bullish momentum but also signaling that the meme coin might be overbought at this point.

Even though BONK appears to be overbought, a financial expert predicts it’s experiencing a ‘Blue Sky breakthrough,’ potentially maintaining its upward trend for the near future.

This idea is reinforced by powerful factors propelling the upward trend and the current excitement surrounding meme tokens. Independently, Bitcoin‘s recent surge to record levels has intensified overall market enthusiasm, adding fuel to the fire in the meme coin sector, which experienced a 2.3% growth over the past day.

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2024-11-20 13:04