The beginning and end of 2023 held two entirely different stories for the Solana network and SOL. After hitting rock bottom following the FTX events, SOL later recovered. A significant contributor to this recovery was the smart phone SAGA and the accompanying BONK airdrop. BONK’s market entry and its meteoric rise at that time also energized the market and opened doors to significant gains. So, what is happening with BONK now?
BONK Comments and Expectations
BONK’s current price suggests it might be on an upward trend due to recent investor moves. This could help recover losses from last month’s price drop, which followed a 50% price correction.
However, things might be changing for BONK. After an 11-day period, BONK’s funding rate shifted from negative to positive. This change indicates that long positions have visibly strengthened, contrary to the short dominance seen during the negative rate period.
With the positive funding rate rising, investors are becoming more optimistic about cryptocurrency. These positions taken by investors could trigger a price increase for BONK in the near future.
On the other hand, the correlation between BONK and market leader Bitcoin (BTC) has reached a high level of 0.94. This correlation indicates that BONK’s current price movement parallels BTC’s price movement.
The situation arising from this correlation suggests that any potential BTC price movement could also lift BONK. Stability and potential rise in BTC could push the meme coin towards an upward price increase.
BONK Price Prediction
BONK’s current trading level is around $0.00002077. At the time of writing, it was trading below the $0.00002153 support level. The 48% drop in the last month could reverse if the altcoin rises above $0.00002500.
Beyond that, although the $0.00002748 price target seems distant for now, BONK could reach a different level if investors support the rise and Bitcoin makes an upward move.
On the downside, if the price falls below $0.00002000, it could drop to $0.00001500. If this support is also lost, BONK’s price could decline to $0.00001375.
