Shiba Inu-themed token Bonk (BONK) achieves record-breaking heights, marking an extraordinary surge in its value. So, this remarkable ascent follows the token’s listing on the prominent cryptocurrency exchange KuCoin. The occurrence of this listing was towards the end of November.
As of now, the dog-themed cryptocurrency is trading at $0.0000125. So, it is displaying a staggering 200% increase in value within the past seven days. According to data from CoinMarketCap, BONK stands out as the cryptocurrency with the most substantial gains in the past week.
KuCoin Listing Triggers Unprecedented Demand on Bonk
- The recent listing of BONK on KuCoin sparked an unprecedented surge in demand. So, it is raising expectations akin to the renowned “Coinbase effect”. This surge in interest was instrumental in driving up the demand for BONK over the last week. So, recent analysis of BONK’s price movements reveals a significant upsurge in critical momentum indicators since December 4th. At present, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) skyrocketed to overbought levels. So, each of them registered 87.32 and 94.63, respectively.
- These elevated values signify an imbalance between buying pressure and token circulation. However, such high levels of buying activity often result in buyer exhaustion. So, this makes it challenging to sustain further price hikes. Consequently, retracements or price corrections can occur at these elevated levels.
Surge in Volatility Amid BONK’s Meteoric Rise
- The sudden surge in demand for BONK and its subsequent price surge contributes to heightened market volatility. So, an examination by AMBCrypto indicates a steady expansion in technical instruments. There’s a major difference between the upper and lower bands of BONK’s Bollinger Bands (BB) over the past week.
- A widening of these bands typically signals increased market volatility. So, the coin’s Bollinger Bandwidth, confirms this escalation in Volatility. Currently trading above the upper band of its BB indicator, BONK appears to be in for a potential correction. So, the elevated prices above this band often signal unsustainability in the short term.
Indicators Pointing Towards Escalating Volatility
- Another indicator hinting at escalating volatility is BONK’s Average True Range (ATR). So, it is showing an upward trend since December 5th. This indicator gauges market volatility by calculating the average price range between highs and lows over specific periods.
- The cryptocurrency sector, having rebounded significantly throughout this year,largely recovered from the setbacks experienced in 2022. So, the global crypto market cap is surging beyond $1.6 trillion. Leading digital assets such as Bitcoin (BTC), Ether (ETH), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) recorded substantial gains.
BONK Link to Solana and Its Potential Impact
- Some credit of BONK’s recent surge is its association with Solana. So, it is often in the consideration as the initial Solana-dog cryptocurrency “for the people, by the people.” Hence, it closely follows the performance of Solana (SOL). So, Solana is demonstrating remarkable growth, with its valuation nearing $70 in mid-November. But some retracement made it settle around the $60 mark. So, some analysts foresee a bullish run shortly for SOL.
- Analyst Jacob Canfield, in a November forecast, optimistically predicted SOL’s potential surge to $1,000. So, this positions it as the second-largest crypto asset after BTC. At present, however, Solana, like other major altcoins, is trailing behind BTC in terms of gains. So, analysts anticipate an upcoming alt season once Bitcoin stabilizes and enters a consolidation phase.
Conclusion
The phenomenal surge of Bonk (BONK) is due to its listing on KuCoin. Coupled with the intertwined relationship with Solana. So, it is experiencing a record-breaking surge, reflecting heightened interest in the cryptocurrency market. So, investors should be cautious about the changing market and outcomes that might occur following such explosive price surges.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
