Bonk, the leading meme coin on the Solana blockchain, is experiencing a surge in investor interest, with its price rallying over 9% in the past 24 hours. This bullish trend coincides with the news of VanEck filing for a Solana ETF in the US, classifying SOL as a commodity. Analysts believe this development could propel Bonk to new all-time highs (ATHs).

Prior to this week’s rise, Bonk had been on a month-long downtrend. However, a technical breakout suggests a potential reversal. The current price action forms an ascending triangle, a bullish chart pattern. Additionally, Bonk is trading above its 50-day simple moving average (SMA) but below the 200-day SMA, hinting at an upcoming price swing.

Further bolstering the bullish case, the 14-day Relative Strength Index (RSI) for Bonk recently crossed above its moving average. This indicates a shift in market sentiment towards optimism. The RSI currently sits at a comfortable midpoint (47), leaving ample room for growth.

Investor confidence seems to be rising as well. Data from Coinalyze reveals an 8.91% increase in open interest (OI) for Bonk over the past 24 hours. This suggests investors are placing bets on Bonk’s price appreciating further. Supporting this, Bonk’s daily trading volume has jumped by 98%, signifying heightened investor activity.

Analysts are projecting a continuation of Bonk’s upward trajectory, with a price target of $0.00004800 – its previous ATH. This translates to a potential 71% gain from current levels. If the bullish momentum persists, Bonk could break out of the ascending triangle and establish new price records.

However, a downward correction remains a possibility. In such a scenario, Bonk might find support around $0.00002186 and $0.00001397, potentially bouncing back from these levels.

The primary catalyst for Bonk’s recent surge appears to be the VanEck Solana ETF filing. This development has also positively impacted Solana’s price, which shot up by 6%. The broader Solana ecosystem seems to be experiencing a period of expansion, with positive news like Worldcoin’s integration and Pantera Capital’s bullish outlook on the network. Additionally, the recent launch of pumpdotfun on Solana, surpassing the network’s daily revenue, adds to the overall positive sentiment surrounding the ecosystem.

In conclusion, Bonk is displaying promising bullish signals, likely fueled by the news of a potential Solana ETF. This development has the potential to benefit the entire Solana ecosystem, including other meme coins. While some downside risk remains, the current technical indicators and investor confidence suggest Bonk could be on the verge of reaching new heights.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.