BONK Price Forecast Open Interest Decreases by $8 Million – Can BONK Usher in a Rally?
BONK’s recent price decline has led to a significant drop in investor confidence, which is reflected in the asset’s open interest (OI). OI fell from $24 million to $16 million, recovering slightly to $17.27 million.
While positive funding rates favor long contracts, the sharp decrease in OI points to bearish market sentiment. If this decline in investor confidence persists, it could lead to further price declines.
Current price analysis places BONK at $0.00003323, with technical indicators pointing towards potential key support and resistance levels.
BONK investor confidence declines, open interest decreases
BONK’s price decline has impacted investor confidence, which is reflected in the asset’s open interest (OI). On Saturday, OI dropped $8 million from $24 million to $16 million.
However, it recovered slightly on Sunday, rising to $17.27 million, reflecting a 0.09% increase.
BONK Derivatives Data Analysis
BONK Derivatives Data Analysis
While funding rates remain positive, indicating the dominance of long contracts, the sharp decline in OI points to bearish sentiment for BONK.
If investor confidence does not improve, a decline in OI could lead to further price declines.
Key takeaways:
Open interest: down $8 million in 48 hours.
Current Open Interest: Increased from $16 million to $17.27 million.
Funding rate: still positive, good for long contracts.
What is Open Interest (OI) and what does it mean?
Open interest (OI) refers to the total number of unsettled derivatives contracts, such as futures or options, and provides insight into an asset’s trading activity and liquidity.
A higher OI indicates higher market participation and interest, while a lower OI indicates lower interest.
In the case of BONK, OI fell from $24 million to $16 million, although it recovered slightly to $17.27 million, indicating a decline in investor confidence, which could have a negative impact on its price.
Bonk Price Prediction
On the 4-hour chart, BONK’s current price is $0.00003323. The pivot point marked by the green line is $0.00003536.
Spot resistance is at $0.00003802, $0.00004013, and $0.00004261, while spot support is at $0.00003240, followed by $0.00003014 and $0.00002787.
Bonk Price Prediction
Bonk Price Prediction – Source: Tradingview
technical analysis
Technically, the relative strength index (RSI) is at 39.79, indicating oversold conditions, and the 50-day exponential moving average (50 EMA) is at $0.00003482.
An ascending trendline supports BONK near $0.00003240, further reinforced by a double bottom pattern. This suggests that the uptrend may continue if the price remains above $0.00003240.
Conclusion: Consider buying BONK above $0.00003240, while a break below this level could signal a sell signal.
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Original text: https://cn.cryptonews.com/news/bonk-price-prediction-as-open-interest-falls-by-8-million-will-bonk-recover.htm
