Double-digit growth in the value of BONK led to a significant increase in trading activity in the derivatives market.
Trading volume at press time was $206 million and has increased by 77% in the last 24 hours, according to Coinglass.
Likewise, open interest in memcoin increased by 24%, according to the data provider.
Open interest measures the total number of outstanding derivatives contracts, such as options or futures, that have not been settled. When it increases, it means more traders are opening new positions.
When open interest in an asset and rising prices are a bullish signal, it often confirms the strength and continuation of the uptrend.
However, BONK futures traders do not seem confident that the price rise will continue.
This was based on funding rate readings on cryptocurrency exchanges, which was negative (-0.02%) at the time of publication.
Funding rates are applied in perpetual futures contracts to ensure that the contract price of an asset is close to its spot price.
When an asset's funding rate is negative, it means that more traders are buying the asset in anticipation of a price decline than those who are buying and hoping for a rise.
Meanwhile, the bullish trend for memcoin in the spot market gained momentum. For example, for the first time since July 4, the Parabolic SAR indicator point of the token was seen below its price.
This indicator is used to determine potential trend direction and reversals. When its dotted lines pass below the asset price, the market is considered to be in an uptrend. This indicates that the price of the asset is rising and the upward trend may continue.
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