Bonk, the second-biggest meme coin on Solana, rose after Rex Shares filed for a spot exchange-traded fund.
Bonk (BONK) rose by 6.5%, making it one of the best-performing Solana (SOL) meme coins. The token has climbed about 26% in the past seven days.
This rebound came after Rex Shares, an asset management firm with over $8 billion in assets under management, filed an ETF application. The company also applied for other crypto ETFs, including those tied to Ethereum, Bitcoin, Solana, Ripple (XRP), and Dogecoin.
Analysts believe that the Paul Atkins-led Securities and Exchange Commission will be more open to approving spot crypto ETFs. Gary Gensler, Atkins’ predecessor, had focused mainly on Bitcoin and Ethereum ETFs. It remains unclear, however, whether the SEC will approve funds for meme coins like Bonk.
Crypto ETFs have gained significant traction among institutional investors. Bitcoin ETFs have attracted over $35 billion in inflows, while Ethereum funds have pulled in over $2.66 billion. However, most institutions are expected to avoid allocating significant funds to meme coins like Bonk.
Launched in 2022, Bonk has grown into one of the largest meme coins, boasting a market cap of over $2.3 billion. Still, it faces increasing competition from other Solana-based meme coins like Fartcoin, Dogwifhat, and Gigachad.
Bonk price analysis: can it 10x from here?
BONK price chart | Source: crypto.news
The daily chart shows that Bonk’s price peaked at $0.00006 in December before dropping sharply to $0.00002490, forming a double-bottom pattern. A double-bottom is a widely recognized bullish reversal indicator.
Bonk has also created a falling wedge chart pattern, another popular bullish reversal setup. The coin has moved above its 50-day and 100-day moving averages and is gradually forming a bullish engulfing candlestick pattern.
As a result, the coin is likely to experience a bullish breakout, pointing to further gains. The next level to watch is its 2024 high of $0.000060, which represents a potential 77% upside from the current price.
For Bonk’s price to 10x from here, it would need to reach $0.00033, which is approximately 900% above its current level. While such a move is theoretically possible, achieving this target is likely to take several years.
