Bonk price defies gravity as holders near 500k: what next?

Bonk token continued defying gravity on Monday as demand for Solana tokens jumped. The token surged to a high of $0.0000050 on Monday, the highest point since March 2nd. It has surged by more than 2,500% from the lowest point this year, giving it a market cap of over $190 million.

Bonk holders are rising

Bonk is a meme coin that was launched on December 25th last year as a free airdrop on the Solana community. It was seen as the biggest rival to Shiba Inu and other meme coins that boomed during the pandemic.

Bonk price has jumped recently as the fear and greed index in the crypto industry improves. The index stands at the greed zone of 74, helped by the recent cryptocurrency rally. Bitcoin sits comfortably above $37,000, much higher than last year’s low of $14,900.

Bonk has also jumped because of the strong performance of Solana. SOL price surged to a high of $68.12, the highest point since May 9th of this year. It has surged by more than 650% from its post-FTX collapse low.

Solana has jumped even as concerns about the FTX Estate rise. The estate is set to liquidate thousands of their SOL holdings as the bankruptcy and restart process continues. Other Solana cryptocurrencies have also jumped.

For example, Orca, the biggest Solana DEX has continued to gain its market share. Data by CoinMarketCap shows that Orca handled over $132 million worth of cryptocurrencies in the past 24 hours. This makes it the third-biggest DEX in the world after dYdX, and Uniswap V3. Tokens like Raydium and Solend have also soared.

Bonk has also seen the number of holders jump recently. According to SolScan, Bonk has over 476k holders and there is a likelihood that they will get to 500k as the Bonk token jumps.

Bonk price forecast

BONK chart by TradingView

Turning to the daily chart, we see that the BONK token has staged a strong recovery in the past few weeks. It has surged above all moving averages. The Relative Strength Index (RSI) sits above the overbought level while the MACD has moved above the neutral point. 

Therefore, the path of the least resistance for the token is bullish, with the next point to watch being at $0.0000053, the highest point on record. This price is just 20% above the current level. A break above this price will see it jump to the next psychological point at $0.0000055.

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