Table of Contents
- Undisputed king of the memecoins
- Parabolic price action
- Strong support
- Trade with good risk management
Bonk (BONK) is the champion meme coin built on the Solana ecosystem. Its popularity has really taken off and has outstripped that of $PEPE. What next for $BONK?
Some in the crypto universe will shake their heads sadly when memecoins are mentioned, and many from outside of the world of crypto would be aghast that so much money would be wagered on the ups and downs of memecoins that have absolutely no fundamental technology behind them whatsoever.
Undisputed king of the memecoins
However, that being said, $BONK is now the current undisputed king of the memecoins, having surpassed the market cap of its big, ethereum-based rival $PEPE. According to Coingecko, $BONK has a market cap of $1,795 billion, while $PEPE has a market cap of practically a third of this, at $591 million.
Parabolic price action
Source: Trading View
Looking at the daily time frame it can be seen that $BONK is displaying parabolic price action. In only two days $BONK rose 165%. On Friday the price reached $0.000035, before drawing back to possible support at $0.0000290 at time of going to press.
It would be good for $BONK if this support were to be held, but the shorter time frame RSIs (relative strength indicators) are at the top, signalling maximum momentum, but also meaning that the indicators could start falling over the next few days, bringing momentum down with them.
Source: Trading View
If the crypto market decides to pull back, this would probably also affect the $BONK price. If this scenario should play out, there is strong support back at $0.0000146, which also happens to coincide with the 0.786 fibonacci level.
Trade with good risk management
Those trading memecoins must remember that they are just a bit of fun, and at the end of the day they are really chips that can be spent at the casino table. Traders who are inexperienced in the crypto market should do their homework on trading diligently and employ stop losses and other proper risk management.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Investment Disclaimer