The price of BONK may recover due to the bullish behavior of investors observed over the past few days.
This could help meme coins recover from the damage that led to a 50% correction over the past month.
BONK Investors Are Bullish
BONK's price rise is currently in the hands of investors . After 11 days, BONK's funding rate switched from negative to positive. This change suggests that long contracts now dominate the market, unlike the dominance of short selling in negative interest rates.
A positive funding ratio means traders are willing to pay a premium to maintain long positions. This indicates increased investor confidence in the altcoin's upside potential and reflects bullish sentiment. This change could be a major driver of BONK price in the short term.
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Additionally, the correlation between BONK and Bitcoin (BTC) is currently the highest at 0.94. This high correlation means that the price movements of meme coins closely match those of Bitcoin (BTC).
Given this high correlation, the price of BONK could also benefit significantly from a Bitcoin price recovery. As BTC stabilizes and potentially rises, it is likely that meme coins will follow suit, bringing profits to investors.
BONK Price Prediction: Rebound from Lows
Trading at 0.00002103, the price of BONK is at a three-month low at the time of writing, just below the support line of 0.00002153. Meme Coin's 48% drop in nearly a month could be reversed if the altcoin climbs back above $0.00002500. However, the target is higher at $0.00002748, but BONK holders will continue to be bullish.
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If this fails, Meme Coin could fall below $0.00002000 and possibly fall to $0.00001500. If this support line is broken, the price of BONK will fall to 0.00001375, invalidating the bullish logic.
