Why Is $BONK Rising Today?
BONK, a dog-based meme cryptocurrency, surged over 20% on Wednesday, reaching a new all-time high (ATH) of $0.000062. Several factors contributed to this rally:
1. Upbit Listing
BONK was listed on Upbit, a leading Korean exchange, on Wednesday.
This listing has significantly increased token liquidity and accessibility, reviving interest from investors and traders.
2. Rising Open Interest (OI)
Data from Coinglass shows BONK futures’ OI across exchanges has nearly quadrupled in four days, climbing from $34.05 million on Sunday to $64.11 million on Wednesday.
This marks the highest OI level since its debut, indicating fresh capital entering the market and driving buying activity.
3. Token Burn Announcement
On Friday, BONK announced a plan to burn 1 trillion tokens before Christmas.
This move is expected to reduce the token's circulating supply, increasing scarcity and potentially boosting its value.
Weekly Chart Analysis
BONK’s price has surged over 100% in the past week, hitting a new ATH of $0.000062.
If the price closes above the 161.80% Fibonacci extension level (calculated from May’s high of $0.000044 to September’s low of $0.000015) at $0.000062, it could pave the way for a psychological peak at $0.000070.
Momentum and Caution Indicators
The weekly Relative Strength Index (RSI) is at 72, indicating overbought conditions, which may suggest a potential correction.
However, if RSI rises further within the overbought range, BONK’s bullish momentum could persist.
Traders are advised to exercise caution when adding to long positions, as corrections may occur in the near term.
BONK’s strong performance is fueled by strategic developments and increasing market interest, but investors should remain vigilant about market conditions and overbought signals.