Memecoins
Solana’s Memecoin Mania: The Rise of BONK and What’s Next for WIF
- BONK is up more than 8% in the last 24 hours.
- The daily chart of WIF was also green, but a few indicators turned bearish.
While market conditions have turned somewhat in favor of investors, Solana [SOL] took advantage of this to raise its price. Although SOL’s 24-hour price action is promising, SOL-based memecoins like BONK stole the show by recording better growth dynamics.
BONK surpasses Solana
According to CoinMarketCap, the price of SOL increased by more than 4.5% in the last 24 hours. At press time, it was trading at $142.24 with a market cap of over $63.6 billion.
However, all eyes have been on BONK as its value has increased by over 8% in the last 24 hours alone. At the time of writing, the SOL-based memecoin was valued at $0.00002581 with a market cap of over $1.68 billion.
The good news is that memecoin’s trading volume has also increased along with its price, serving as the basis for its bullish rally.
It was surprising to see that despite the recent price rise, BONK’s social volume remained low. Its weighted sentiment also remained in the negative zone, meaning bearish sentiment towards it was dominant.
Source: Santiment
To see if memecoin would manage to maintain this price increase, AMBCrypto analyzed its daily chart. The MACD has shown a clear bullish advantage in the market.
Additionally, its Relative Strength Index (RSI) also gained ascending momentum, suggesting that the chances of the uptrend continuing were high.
Nevertheless, BONK price has touched the upper limit of the Bollinger bands, which constitutes a bearish signal.
Source: TradingView
AMBCrypto then checked data from Hyblock Capital to find possible targets that BONK could hit if the bull rally continues.
In the short term, the first possible target seemed to be $0.000028, as the liquidation would increase at this level, which could lead to a price correction. A breakout above this level could lead the memecoin price to reach $0.000030.
Source: Hyblock Capital
WIF to follow BONK?
dog hat [WIF], yet another popular SOL-based coin, also saw an uptick in price. Over the past 24 hours, the value of WIF has jumped by more than 3.5%.
At press time, it was trading at $2.73 with a market cap of $2.7 billion. AMBCrypto’s analysis of Santient data revealed that things could get even better for WIF.
The memecoin funding rate had fallen. Typically, prices move inversely to the funding rate, indicating that WIF may see more gains soon.
Realistic or not, here it is Market capitalization of BONK in terms of BTC
However, his open interest waned. Every time the metric drops, it suggests that the chances of the current price trend changing are high.
Additionally, sentiment around WIF also remained bearish, as evidenced by its low weighting.
Source: Santiment