Important Highlights
What caused the surge in BONK’s value today?
Today’s increase in BONK’s value can be attributed to the strong buying activity, particularly from large investors, which has shifted market dominance back to the buyers.
How is the renewed demand confirmed?
A notable 111% increase in trading volume, buy orders totaling 4.3 trillion over three days, and a positive Buy-Sell Delta of 300 billion all indicate a significant uptick in accumulation.
After a prolonged period of decline, BONK has hit a bottom.
Since reaching a low of $0.00000844 four days ago, the memecoin has consistently closed at higher levels.
On the daily charts, BONK rallied 13.25%, reaching a high of $0.0000103 before slightly retracing to $0.00001007 at the time of writing.
During the same period, the trading volume surged by 111% to $194 million, indicating increased capital inflows.
But why is BONK experiencing an uptrend today?
BONK buyers seize the opportunity
As BONK’s value declined, holders and investors began selling aggressively out of fear of further losses.
Until recently, sellers dominated the market, but buyers stepped in to take advantage of the dip, leading to a shift back to buyer dominance, as evidenced by Spot Taker CVD.
Source: CryptoQuant
According to CryptoQuant, buyer dominance has been evident over the past seven days, indicating sustained demand.
Historically, buyer dominance has preceded impressive price performance in an asset’s price charts.
Notably, this demand has been particularly strong in the last three days, with the memecoin recording 4.3 trillion in Buy Volume.
In the past 24 hours alone, the memecoin saw 2.4 trillion in Buy volume compared to 2.2 trillion in Sell Volume.
Source: Coinalyze
As a result, the memecoin recorded a Buy Sell Delta of 300 billion, indicating aggressive spot accumulation.
Whales leading the way
Interestingly, the most active buyers in the market have largely been whales. Data from CryptoQuant on Spot Average Order Size showed significant whale orders.
Source: CryptoQuant
Large whale orders typically indicate increased participation from major entities as they accumulate the memecoin.
Increased whale accumulation historically accelerates upward pressure on an asset’s price.
Additionally, exchange activities further confirm this accumulation trend, with BONK’s Spot Netflow turning negative for the first time in three days.
Source: CoinGlass
At present, Netflow stands at -$385.6k, a significant decrease from $2.11 million the previous day, indicating increased outflows from exchanges.
Is this the beginning of a sustained uptrend?
As per AMBCrypto, BONK has rebounded as buyers, including whales, have entered the market to accumulate the memecoin.
Its Stochastic RSI has surged to 68, signaling buyer dominance, while its Relative Vigor Index (RVGI) has shown a bullish crossover, confirming the strength of the trend.
Source: TradingView
Typically, when momentum indicators align in this manner, they indicate potential continuation of the trend. Therefore, if the current demand persists, BONK could target $0.000011.
Achieving these levels will reinforce the memecoin and propel it towards $0.000013, completing the breakout. However, if demand diminishes rapidly and profit-taking occurs, BONK could drop to $0.000009.
sentence: The student studied diligently for the exam.
Rewritten: The student worked hard to study for the exam.