- Bonk rallied 21.22%, hitting a 3-week high of $0.0000174.
- Buyer volume outpaced seller volume by 167.31 billion tokens.
Bonk [BONK] rallied 21.22% by bouncing off its recent bottom of $0.000013, rising to a local high of $0.0000175 by press time.
Over the same time, the memecoin’s trading volume spiked by 332% to $548 million, reflecting considerable demand.
Demand for Bonk soars
After taking a step back in the market, buyers have returned, signalling newfound demand. On the 3rd of July, Bonk saw $1.61 trillion in buy volume compared to $1.44 trillion in sell volume, according to Coinalyze.
Source: Coinalyze
The same pattern was observed the previous day, with buy volume hitting 1.21 trillion. As a result, Bonk recorded a positive buy-sell delta of 167.31 billion tokens, reflecting aggressive spot demand.
Before buyers stepped in, Bonk had four consecutive days of higher selling pressure, with investors selling more than they were accumulating.
Such significant buying activity reflects newfound demand, with investors returning to pump fresh capital.
Derivatives swing into the pump
AMBCrypto’s look at derivatives data showed that fresh capital was flowing into the market. According to CoinGlass, Bonk’s Open Interest spiked 45.93% to $17.38 million, while volume surged 271.1% to $97.59 million.
Source: CoinGlass
A rising Open Interest alongside volume confirms increased participation in the Futures market by new entrants.
At the same time, the memecoin’s Long/Short ratio spiked to 1.057, suggesting that investors were entering the market. A ratio above 1 implies most investors are actively betting on prices to continue rising.
What are momentum indicators saying?
Bonk experienced a substantial upsurge as speculative buyers returned to the market. As the cryptocurrency market recovered, investors returned to take strategic positions, fearing they would miss out (FOMO).
As a result, the memecoin’s MACD surged to -0.00000023 at the time of writing, signalling strong upward momentum.
Source: TradingView
At the same time, Bonk’s Relative Strength Index (RSI) surged to 60, edging into bullish territory. The RSI at these levels suggests that buyers are currently in a position of dominance in the market.
If the current buying momentum holds for a sustained period, Bonk will likely reclaim $0.000018 and aim for a jump to $0.000020.
Conversely, if the buyer’s momentum fades and profit takers overwhelm the market, Bonk will find support around $0.000015.
