The meme coin world witnessed a surprising shift this week as Solana-based Bonk (BONK) surpassed dogwifhat (WIF) to become the fourth-largest meme coin by market cap. This “flipping” comes amidst a broader crypto market recovery fueled by positive news surrounding Spot Ethereum ETFs.
BONK’s rise can be attributed to a 12% price increase over the past week, while WIF saw a decline of 16%. This surge propelled BONK’s market cap to $1.83 billion, edging past WIF’s $1.69 billion. However, concerns linger about BONK’s ability to sustain this momentum.
Despite the initial bullish run, BONK’s trading volume has dipped by over 45%, indicating a potential decrease in investor and trader participation. This decline is further compounded by a 14.3% drop in Open Interest (OI), which reflects outstanding derivative contracts tied to the asset. This suggests growing bearish sentiment and potential selling pressure within the BONK market.
Interestingly, WIF isn’t faring much better. While it holds the lower spot now, it’s experiencing similar struggles. Its trading volume has dropped by over 38%, but unlike BONK, WIF’s OI has seen a slight increase of 4% in the last 24 hours. This could be a sign of renewed interest from some investors.
Looking at technical indicators, BONK appears to be on an upswing. Since December 2023, it has consistently found support from a key trendline, leading to price spikes. This time around, BONK surged over 27% in just three days after bouncing off this trendline.
However, BONK now faces a critical resistance zone near $0.000026. A breakout above this level, with the daily candle closing over $0.000028, could propel it toward its next resistance point at $0.000040. Additionally, technical indicators suggest BONK might be in a bull cycle, currently trading above its 200-day Exponential Moving Average (EMA).
While BONK’s recent performance is noteworthy, its future trajectory remains uncertain. The key will be whether it can overcome the current resistance level and sustain investor interest. If it falters, WIF could potentially reclaim its lost ground, making this meme coin-flipping a temporary blip.