š BONK gains 15% in 24 hours ā Should traders prep for another rally now?
After bleeding for most of the week,Ā Bonkās [BONK]Ā price posted gains of 15% as the weekend began. At press time, BONK was valued at $0.000022 on the chartsĀ ā A noteworthy uptick from when it dropped to $0.000018 on 5 July.
Thatās not all though, and the memecoinās price might continue to hike similarly. One reason for this prediction is the tokenās social dominance.
šø Challenging week, better weekend
According to Santiment, BONKās social dominance increased to 0.303%. Social dominance measures the share of discussions an asset has within all crypto conversations on social media platforms.
When it rises, it means discussions online haveĀ improved. That was the situation with BONK. However, a fall suggests something else completely.
Historically, social dominanceĀ has had a correlation with an assetās price. For example, on-chain data revealed that whenever BONK discussions online move from low to high, the price follows suit.
As can be seen in the chart below, this has happened quite a few times, including on 20 April, 20 May, and 24 June. If the previous pattern rhymes, then the value of the token could beĀ in placeĀ to hit $0.000024 in the short term.
Despite the correlation between the metrics though, it is important to mention that if discussions get too intense, it would spell a local top for the price.
Proof of this can be seen in the chart as extremely high social dominance foreshadows a price decline. Therefore, if BONKās price continues to increase, and social dominance gets overheated.
šø BONK to $0.000024 programmed?
We also observed that the one-day volatility around the memecoin jumped. The hike in volatility can be interpreted as a testament to the quick pace with which the price hike took over the market.
If buying pressure for BONK rises and if it isĀ accompanied by high volatility, the jump to $0.000024 might be validated. On the contrary, if volatility continues to fall, the token might trade sideways on the charts.
