BONK Price Recovery Hinges on Bitcoin

The bullish actions of investors over the past few days may be contributing to the potential recovery of BONK’s price; this could potentially help the meme coin undo the harm caused by the 50% correction that occurred in the past month

Investors in BONK are optimistic

Investors are currently altering their opinions regarding BONK’s price increase. BONK’s funding rates have reversed from negative to positive after more than 11 days. This change implies that long contracts are currently the dominant force in the market, in contrast to the domination of shorts observed during negative rates.

The positive funding rates suggest dealers are prepared to pay a premium to preserve their long positions. This suggests that investor confidence in the altcoin’s growth potential has increased, indicating a favorable sentiment. This modification can significantly influence the price of BONK in the immediate future.

Furthermore, the correlation between Bitcoin (BTC) and BONK is at a record high of 0.94. This robust correlation indicates that the price fluctuations of meme currencies are closely correlated with those of BTC.

This high correlation suggests that BONK’s price could experience a substantial increase in response to any Bitcoin price recovery. The meme coin is expected to follow suit as BTC stabilizes and potentially increases, which could result in gains for its investors.

Prediction for the Price of BONK: Rebounding from Lows

At the time of writing, the price of BONK is $0.00002103, which is a three-month low and is just below the support level of $0.00002153. The meme coin’s 48% decline in nearly a month could be reversed if the altcoin regains its level above $0.00002500. Nevertheless, the objective is $0.00002748, which would encourage BONK holders to maintain their favorable stance.

If this does not transpire, the meme coin may be susceptible to a decline below $0.00002000, with a probability of falling to $0.00001500. If this support is also breached, the bullish thesis would be rendered invalid, and the price of BONK would plummet to 0.00001375.