Bonk price has surged by more than 14% in the last 24 hours to trade at $0.000016 today, April 25, marking its highest level in more than two months. Following this rally, Bonk has overtaken Fartcoin to reclaim its spot as the second-largest Solana meme coin, with its market cap ballooning to $1.27 billion.
The ongoing rally suggests that capital is likely rotating from Fartcoin to old and well-known SOL meme coins, such as BONK. Traders are likely taking profits on Fartcoin, considering that this fairly new meme coin has outperformed the entire crypto market with a staggering 180% gain in three weeks to trade at $1.11 at press time.
Why is Bonk Price Rallying Today?
Bonk price is likely rallying today because of high retail interest and capital rotation from new to old Solana meme coins. The traders that bought into Fartcoin’s recent rally are likely taking profits after the uptrend faltered once the price hit a multi-week high of $1.20. As Fartcoin shows weakness, traders are choosing to invest in Bonk to secure more returns amid the ongoing hype around Solana meme coins.
The other reason why BONK value today is surging is because of the recent show of strength amid the ongoing battle for market cap dominance with Fartcoin. Earlier this week, Fartcoin price flipped Bonk by market cap before the latter quickly reclaimed its second spot as a top meme coin on Solana, bolstering investor confidence.
Lastly, there is speculation that a Solana meme coin season is heating up. At press time, SOL meme coins had a total market cap of $9.73 billion per data from CoinGecko. The top five coins have registered gains of more than 30% in seven days, with some like TRUMP and PENGU surging by more than 70%.
Bonk Technical Analysis as Bullish Momentum Strengthens
BONK price is trading within an ascending parallel channel on the daily chart, which is an indicating that an uptrend is currently ongoing. Moreover, the RSI indicator is rising, and it has also created a series of higher highs. This points towards strengthening bullish momentum, supporting a bullish BONK price prediction.
The RSI bounced above 50 last week and has remained on a steady uptrend, showing that the buying interest is sustained. If this continues, BONK might make a bullish breakout from the ascending channel and reach $0.000021 in the near term. The case for a continued uptrend is further supported by the rising ADX line, which shows that the current trend is strong.
Meanwhile, this bullish outlook towards BONK price will be invalid if it falls below the critical support level of $0.000012. At this point, this meme coin will have fallen out of the ascending channel with a lower high, which might shift the market structure to bearish. However, as long as the frenzy towards Solana meme coins continues, BONK might post new highs.
The post Bonk Price Soars 14% as Capital Rotates From Fartcoin to Old Solana Meme Coin appeared first on CoinGape.
