- Solana-based Bonk (BONK) recently surpassed Dogwifhat (WIF) to become the fourth-largest memecoin, driven by a 12% price increase.
- Despite facing resistance and reduced trading volume, BONK shows potential for further gains if it maintains its bullish trend.
A Memecoin Battle: BONK vs. WIF
Solana-based Bonk (BONK) has made headlines by overtaking Dogwifhat (WIF) on the charts, becoming the world’s fourth-largest memecoin. Following the latest updates related to Spot Ethereum exchange-traded funds (ETFs), the crypto market experienced a green wave. BONK, in the midst of this recovery, flipped WIF and showcased a significant bullish trend.
According to CoinMarketCap, BONK appreciated by over 12% in the last seven days, while WIF lost 16% of its value. Consequently, BONK’s market cap reached $1.83 billion, surpassing WIF’s $1.69 billion. However, BONK’s momentum has been challenged as its trading volume fell by over 45%, indicating reduced investor and trader participation. Similarly, its Open Interest dropped by 14.3% due to bearish sentiment and selling pressure in the market.
On the other hand, WIF, trading near $1.65 at the time of writing, faced similar struggles with a 38% drop in trading volume. Interestingly, WIF’s Open Interest saw a 4% increase in the last 24 hours, suggesting some investors still hold interest.
Technical Analysis: BONK’s Path Ahead
Despite recent challenges, BONK appears bullish on the price charts. Since December 2023, BONK has consistently received support from a trendline, leading to substantial surges. After taking support, BONK surged by more than 27% in just three days.
Currently, BONK is encountering a strong resistance area near $0.000026, which aligns with the neckline of a bullish double-bottom price pattern. A breakout above this level, coupled with a daily candle closing above the $0.000028 level, could potentially push BONK to the $0.00004 mark – its next resistance level.
Technical indicators reinforce BONK’s bullish trend, with the memecoin trading above the 200 Exponential Moving Average (EMA). If this trend continues, BONK could further consolidate its position in the market.
The Investor Sentiment
While BONK shows promise, investor sentiment remains cautious. The recent dip in trading volume and Open Interest suggests a need for sustained momentum to attract more investors. As BONK approaches crucial resistance levels, its ability to maintain bullish momentum will be critical.
BONK’s recent surge and its flip over WIF mark a significant milestone in the memecoin market. However, sustaining this bullish trend and overcoming resistance levels will be key to its future success. Investors should watch closely as BONK navigates these crucial price points in the coming days.
