Bonk Inu [BONK] is currently attracting attention with its plans to launch the first meme token exchange-traded product (ETP) in the United States.
Announced at the Solana Breakpoint event, BONK has partnered with Osprey Funds to launch an ETP later this year. The move has sparked excitement among investors, with BONK expected to surge in price, potentially exploding over 200% in October.
As the first memecoin to target an ETP, BONK is opening up the prospect of further development and possibly an exchange-traded fund (ETF) in the future. Investors are closely watching BONKâs progress.
Recent developments in BONK have influenced its price action. The BONK/USDT pair has touched this important support level three times, a level that led to a price increase of more than 182% from April to May this year.
However, the pair saw a decline, returning to the support zone on August 5 as the entire crypto market fell to a six-month low.
With the announcement of Bonkâs ETP, a product that could lead to the first memecoin ETF, optimism is growing. The Bollinger Bands on the daily chart are narrowing, signaling a possible breakout.
The moving average convergence divergence (MACD) indicator also shows increasing buying momentum, suggesting that prices could soon rise.
BONK is currently trading above the Bollinger Band average, indicating rising positive sentiment.
BONK OI-weighted Capitalization Ratio
Another positive signal comes from the OI-weighted capitalization ratio, which has turned positive. This shows that long traders are increasingly optimistic about BONK's price potential.
Currently, the OI-weighted capitalization stands at 0.0006% with BONK priced at $0.000018. This growing confidence among traders could send it soaring to new highs, potentially topping Julyâs high and generating gains of over 110%.
Selling volume and short position reduction
Selling volume and short positions are also decreasing, further supporting the bullish outlook. The decline in contract turnover suggests that selling pressure is easing and the market is in a consolidation phase.
This sets up a favorable environment for price increases, especially if demand remains strong and supply continues to decline.
With selling pressure easing and long positions increasing, BONK looks well-positioned to recover and possibly surpass previous highs.
BONK's upcoming ETP launch, coupled with reduced selling pressure and increased bullish sentiment, could push its price higher.
Investors are expecting a potential breakout that could take BONK back to July highs, representing a 110% return and positioning it for further growth in the final quarter of 2024.
