The Solana-based meme coin BONK emerged as the day's top performer, climbing 22% in the past 24 hours as cryptocurrency markets experienced a broader recovery. The rally stems primarily from renewed investor interest surrounding the potential launch of a leveraged exchange-traded fund tied to the digital asset.
What to Know:
- Tuttle Capital filed a post-effective amendment with the SEC for a 2x Long BONK ETF that could launch as early as July 16
- BONK's spot net inflow surged over 100% to $1.68 million, indicating growing investor demand
- The meme coin broke above its 20-day exponential moving average, signaling short-term bullish momentum
ETF Filing Triggers Trader Speculation
Tuttle Capital recently submitted a post-effective amendment to the Securities and Exchange Commission for its proposed suite of leveraged ETFs, including a 2x Long BONK ETF. The filing indicates the product could go live as early as July 16, according to regulatory documents.
This development has reignited enthusiasm around BONK among retail and institutional traders. Market participants are piling into positions based on speculation that the ETF could attract additional capital inflows and institutional attention to the previously overlooked meme coin.
The growing interest becomes evident through the token's rising spot net inflow metrics.
Current netflow totals $1.68 million, climbing over 100% during the past day according to data from Coinglass.
Spot net inflow tracks capital entering an asset through direct purchases, serving as an indicator of growing investor interest and demand. When an asset's spot net inflows climb, it typically signals bullish sentiment in the market.
Technical Indicators Support Bullish Outlook
BONK's rising net inflow reflects growing investor confidence in the asset and could contribute to upward price pressure as more capital flows into the market. The meme coin's positive funding rate of 0.0085% confirms this bullish outlook, signaling a preference for BONK long positions over shorts among futures market participants.
The funding rate represents a periodic payment between traders in perpetual futures contracts designed to keep the contract price aligned with the spot price. When the funding rate is positive, higher demand exists for long positions.
This means more traders are betting on BONK's price extending its gains in the short term rather than declining. The technical setup supports this view as the price spike pushed BONK above its 20-day exponential moving average.
Price Action Breaks Key Technical Level
The surge in BONK's price has driven it above its 20-day exponential moving average, which now forms dynamic support below the current price at $0.000014. The 20-day EMA measures an asset's average price over the past 20 trading days while giving more weight to recent prices.
When an asset's price trades above its 20-day EMA, it signals short-term bullish momentum and potential continued upside.
If bulls retain control of the market, they could drive BONK's price toward $0.000018 in the near term.
Conversely, if demand plunges and selling pressure increases, the altcoin's price could break below $0.000016. Such a breakdown would likely send the token falling to $0.000012 as technical support levels fail.
Closing Thoughts
The combination of ETF speculation, rising net inflows, and positive technical indicators suggests BONK may continue its upward trajectory in the coming days. However, meme coin investments remain highly speculative and subject to extreme volatility based on market sentiment and regulatory developments.