Bonk price rallied on Friday, reaching its highest level since May 1 as most cryptocurrencies bounced back. The price surged to a high of $0.000020, marking a 120% increase from its lowest point this year, thereby raising its market cap to over $1.4 billion. This article examines the potential peak of the popular Solana meme coin.
Why Bonk Price Jumped
The Bonk token jumped as investors returned to the crypto market after Wednesday’s Federal Reserve interest rate decision. In it, officials decided to leave interest rates unchanged between 4.25% and 4.50% and embraced a wait-and-see approach.
The Fed’s statement was notably hawkish, leading many experts to delay their expectations for the next interest rate cut. Some analysts, especially at ING, predict the cut will come in the September meeting.
As such, Bonk coin and other cryptocurrencies rose after the Fed decision because the outcome aligned with most analysts’ expectations.
Bonk price also jumped after Trump announced the first trade deal after his Liberation Day tariffs. He announced an agreement to see the US drop some tariffs on the UK. This deal will now provide a roadmap to other countries negotiating with the US.
The US will also start talks with China this Saturday, which may lead to lower tariffs soon, potentially reducing ongoing recession risks.
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Bonk price also jumped as investor demand rose. Data shows that the daily volume jumped by over 50% to over $300 million. Similarly, the futures open interest soared back to over $28 million, the highest point since April 27. Rising open interest signals that an asset’s demand is gaining momentum.
Bonk also jumped as other Solana meme coins soared. The market cap of all these tokens rose by 15% to $10.8 billion. Some of the other top performers were Pudgy Penguins, Fartcoin, Dogwifhat, and Popcat.
Further, Bonk recently incinerated 1 million tokens as the number of holders approached 1 million. Token burns can drive higher prices by reducing the tokens in circulation, creating a more deflationary effect.
Bonk Coin Technical Analysis
The daily chart shows that the Bonk price formed a double-bottom pattern at $0.000008870 between March 11 and April 11. It rose above its neckline at $0.00001535 and retested it on Sunday. A break-and-retest pattern is one of the most bullish signs in technical analysis.
Bonk has now surged above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that the trend is continuing.
Therefore, the most likely Bonk forecast is bullish. The next point to watch is $0.00002165, the highest point on April 28. A move above that level will confirm a bullish outlook and push it to the 38.2% retracement level at $0.00002833, up by 46% above the current level.
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