BONK Hits Record High After Upbit Listing

BONK, the meme coin based on the Solana blockchain, has surged to a new all-time high following a significant announcement from Upbit, a leading South Korean cryptocurrency exchange.

The altcoin, which recently reached $0.000058, has seen a remarkable 18% increase in price, driving its market cap above $4.1 billion. This growth has propelled BONK past Dogwifhat, which had a market cap of $3.2 billion, reclaiming its position as the largest meme coin on the Solana network.

Reasons Behind BONK’s Surge

Several factors have contributed to BONK’s recent rally. The increase in price coincides with a significant rise in futures open interest for the coin. Data from CoinGlass revealed that the open interest for BONK futures jumped to a new all-time high of $53.5 million, marking a seven-fold increase from its monthly low of $6.3 million. This indicates a growing interest from investors, signaling higher demand.

BONK’s listing on Upbit has also played a crucial role in this surge. Following the listing, the coin saw its daily trading volume increase by 95%, surpassing $3.5 billion.

Additionally, Bonk DAO’s announcement of a massive token burn scheduled for Christmas Day has fueled optimism. A total of 1 trillion BONK tokens will be burned, reducing the token supply and increasing scarcity, which could drive the price higher.

Whale Activity and Investor Sentiment

Whale activity has added fuel to the fire. A whale known for successful meme coin investments recently spent 3.4 million USDC to purchase 65.4 billion BONK tokens. Last week, another whale bought 29.32 billion BONK at $0.0000387. Such large purchases often signal confidence in the asset, which in turn can attract retail investors, sparking FOMO (fear of missing out) and further pushing the price up.

Continued Bullish Momentum

BONK’s momentum remains strong despite a surge of over 72% in the last week alone. On the 1-day BONK/USDT chart, the short-term 50-day EMA is above the long-term 200-day EMA, indicating a strong bullish trend. The price has stayed above both EMA lines, further supporting the bullish outlook for the near term.

However, the Relative Strength Index (RSI) is currently at 82, suggesting that the meme coin is in overbought territory. Despite this, some analysts believe that BONK is undergoing a “Blue Sky breakout,” a phenomenon that could sustain its upward trajectory in the coming days.

This optimistic outlook is reinforced by the overall market sentiment, especially with Bitcoin hitting new highs. The strong performance of Bitcoin has bolstered confidence in the broader crypto market, including the meme coin sector, which has seen a 2.3% increase over the past day.