The Shiba Inu-themed token BONK has reached its highest level since January 5th following the launch of the project’s unilateral staking application in its liquidity pools. On November 2nd, “Solana Dog Coin” announced the launch of unilateral liquidity pools, where users can provide liquidity to the platform using a single asset.
TVL Increase in BONK
This is the opposite of traditional liquidity pools, which require users to provide two assets in a certain proportion. Additionally, the launch of the liquidity pool resulted in the entry of new money into the Solana (SOL) ecosystem. The Layer 1 (L1) blockchain network saw an almost 10% increase in total locked value (TVL) for decentralized finance (DeFi) last week.
According to CoinMarketCap data, the launch of the pool, along with the overall market rally, has led to an increase in demand for BONK, which has seen a 250% increase in value since the pool’s launch. The Accumulation Distribution Line (ADL) of the token, which confirms the price trend, was trending upwards at the time of writing.
The ADL measures a token’s underlying supply and demand and determines whether investors are truly buying or selling the asset. During strong upward or downward trends, the ADL confirms the current trend by moving in the same direction as the price. BONK, with a market cap of 5.39 trillion, has shown an upward trend along with its price since the start of the price increase in mid-October.
Critical Metric in BONK
Another indicator that confirms the overall trend of the BONK market is the Aroon Indicator. It was observed that the Aroon Up Line was 100% at the time of writing. When a token’s Aroon Up line is close to 100, it indicates a strong upward trend and that the most recent high level was reached relatively recently.
Similarly, the BONK Aroon Down Line was at 0%. This indicates that the altcoin reached its most recent low level a long time ago. However, momentum indicators, namely the Relative Strength Index (RSI) and the Money Flow Index (MFI), were returning overbought values of 91.56 and 87.53, respectively, at the time of writing.
