BONK Price Set to Face Consolidation Following 50% Rally

BONK’s price is enjoying the bullishness of the broader market cues, but despite the massive rise, the future appears not so bright.

This is because the investors are exhibiting mixed signals at the moment, which could lead to a neutral-bearish outcome.

Bonk Investors Seem Unsure

BONK price is poised to witness a contraction as investors show slight bearishness. This can be seen in the money being pulled out of the Futures market, evidenced in the Open Interest.

Open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. In five days, BONK’s open interest dropped by 20% from $13.8 million to $11.1 million.

This $2.7 million decline shows investors are not keen on trading BONK, a bearish sign for the altcoin.

BONK Open Interest. Source: Coinglass

However, investors still hope for a rally despite money being pulled out of the Futures market. Their faith in the rise is evident in the still positive funding rate.

The funding rate is the periodic payment between long and short positions in a perpetual futures contract to maintain its price close to the underlying asset’s value. It reflects the balance of buying and selling pressure in the market.

Read More: Bonk Airdrop Eligibility: Who Can Claim and How?

BONK Funding Rate. Source: Coinglass

The negative funding rate suggests that short contracts are dominating the market, while long contracts hint at positive contracts taking precedence. Such is the case with BONK as well, which could counter the bearishness from the declining open interest.

BONK Price Prediction: Sideways Is the New Uptrend

The BONK price, trading at 0.00003783, is slightly above the key resistance of 0.00003769. This is the closing price of the previous 2024 high when BONK reached 0.00004800 during the intra-day trading hours.

However, a close above this resistance is unlikely. Secondly, the above-mentioned factors might reduce the bullishness in the market, which could result in a consolidation. BONK could witness sideways movement between 0.00003769 and 0.00002811.

Read More: Best Upcoming Airdrops in 2024

BONK Price Analysis. Source: TradingView

On the other hand, if either of the limits is breached, the neutral-bearish thesis would be invalidated. A breakout may push the BONK price to 0.00004500 and above, while a breakdown may bring the meme coin down to 0.00002200. 

The post BONK Price Set to Face Consolidation Following 50% Rally appeared first on BeInCrypto.