Bonk, a memecoin based in Solana (BONK), has the highest performance amongst the 100 top projects by market capitalization. This dog-themed coin has rallied By 52.1% on the weekly charts and 52.5% on the 14-day chart, as well as 38.4% compared to the prior month. The memecoin has fallen by 17.5% in daily charts since July 2024 and 4.9% on the weekly charts despite the recent rally.
What’s Pushing BONK’s Price?
BONK’s price may have been boosted by several bullish speculations. Rumors suggest that Tuttle Capital could apply for an ETF with a leverage of 2x based on memecoin. A positive ETF decision could result in substantial institutional investment for memecoin. Investors could be expecting a positive response from the market.
A project that is preparing to burn a trillion tokens could be another positive development. BONK is getting closer to reaching 1,000,000 holders. After reaching the one million milestone, the plan is to release the first batch of burns.
The positive ETF developments around a possible Solana ETF may have also boosted BONK investors’ sentiments. The SEC has delayed its decision on Fidelity’s SOL ETF.
A correction is on the way?
BONK’s price is very likely to be corrected in the next few months. The memecoin’s price could dip once the speculation fire dies down.
This is due to the increasing institutional investment. Retail players likely aren’t actively involved in this cycle. Investors could decide in the next few weeks to take profits.
Bitcoin (BTC), and Ethereum (ETH), ETFs, have experienced consistent inflows for the past month. Even during difficult times, ETF flows continued. Even the Israel-Iran war did not stop ETF flows.
You may also like: What BONK, DogWifHat & PEPE Are Signaling for July?
We will have to wait and see how BONK does in the months ahead. A rate reduction could cause a boom in high-risk investments. The Fed, however, has chosen to hold rates at the same level for the time being.
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Source: watcher.guru
