Market
BONK Traders Reposition for Gains Following Price Recovery
Bonk (BONK) price experienced one of its most significant drawdowns on Monday, August 5. The incident, which led to a sharp decline to $0.000015, caused a notable decrease in leveraged positions.
However, futures traders have moved on quickly from the infamous day, according to recent data. This analysis explains the reason for this change and what to expect from BONK.
Bonk Leveraged Traders Pivot to Bullish Positions
One indicator that gives a clear picture of traders’ position is the Funding Rate. This indicator is the cost of holding an open perpetual position in the market and also acts as a barometer of investors’ expectations.
When the Funding Rate is positive, longs (buyers) pay shorts (sellers) a fee, and the average expectation is bullish. In contrast, negative funding means shorts pay longs while expecting a price decrease.
From the image below, traders aligned with short positions during the earlier downturn. But at press time, BONK’s price has increased beyond previous levels. As a result, Funding has turned positive, indicating that traders in the futures market are hoping to profit from the continued price increase.
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To be crystal clear, if the BONK price continues to increase as funding stays positive, traders will get more rewards for their positions. However, that will only be the case if buying pressure in the spot market remains at a heightened level.
However, futures traders are not the only ones with a changed view of the meme coin. According to Santiment, the Weighted Sentiment around Bonk has left the negative region and is now positive.
Weighted Sentiment uses social volume to measure the perception of a crypto project in the market. If the reading is negative, it means that comments online are mostly gloomy. However, a positive rating like it with BONK indicates a rise in optimistic discussions.
BONK Price Prediction: Bullish Pattern Continues
While BONK trades at $0.000021, the daily chart shows that it has formed a cup and handle pattern. This formation is a bullish continuation pattern and appears when a cryptocurrency has undergone a downtrend, recovery, and another downturn amid consolidation.
However, confirmation of the bullish continuation occurs when the price breaks out of the downtrend, as seen in the BONK chart below. If buying pressure increases, the price of BONK may climb to $0.000025 in the coming days.
A successful breach of this level could send the meme coin toward the upper resistance situated at $0.000029. However, traders may need to watch as the Relative Strength Index (RSI), which measures momentum, is yet to cross the neutral line.
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Once the RSI does, the bullish thesis may be confirmed, and the value of BONK can increase exponentially. However, failure to surpass the 50.00 midpoint could leave the token hanging between $0.000019 and $0.000021.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Cardano Whales Accumulation Hits $55 Million: $1 Target Soon?
On November 20, crypto whales offloaded significant amounts of Cardano (ADA), disrupting its bullish momentum. However, the narrative shifted today as the Cardano whales’ accumulation has taken center stage.
This renewed buying activity suggests that ADA’s price might regain its bullish momentum toward $1. But does the data support this bullish outlook?
Cardano Key Investors Change Their Stance
According to IntoTheBlock, Cardano’s large holders’ netflow has surged to 67.51 million ADA, signaling a significant shift in sentiment among crypto whales. The netflow represents the difference between the amount of ADA purchased and sold by large holders over a specific period.
When netflow increases, it indicates that whales are buying more than they are selling. Typically, this is a bullish signal. Conversely, a drop in netflow suggests more selling by whales, which is generally regarded as bearish.
In this case, the recent netflow increase, valued at approximately $55 million, aligns with ADA’s 11% price surge over the last 24 hours. Thus, this Cardano whales accumulation suggests that ADA may be poised for further gains, with the recent uptick serving as a potential foundation for a higher value.
Furthermore, the In/Out of Money Around Price (IOMAP) indicator provides further support for this bullish outlook. For context, the IOMAP analyzes token clusters based on three groups: holders who purchased below the current price (in the money), above the current price (out of the money), and those at breakeven.
This metric is essential for identifying potential support and resistance zones. Specifically, if there is a higher number of tokens “in the money, ” it signifies solid support, as many holders are at a profit and less likely to sell, potentially driving the price higher.
On the other hand, a higher “out of the money,” volume points to resistance, as holders might sell to recover losses, putting downward pressure on the price.
Currently, ADA’s IOMAP shows strong support levels outweighing resistance zones, reinforcing the potential for its price to climb further.
ADA Price Prediction: Move Toward $1 Almost Valid
On the daily chart, ADA’s price has risen above the key Exponential Moving Averages (EMAs). Specifically, the 20-day EMA (blue) and 50 EMA (yellow) are below Cardano’s price. When the price is above the indicator, the trend is bullish.
On the other hand, if the price is below the indicator, the trend is bearish. Therefore, it appears that, with the current trend, ADA could rise higher than $0.87. If this happens, the altcoin might rally toward the $1 mark.
However, if Cardano whales decide to sell and book profits, this prediction might not come to pass. Instead, the price could drop to $0.68.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Bitcoin Price Approaches $100K: The Countdown Is On
Bitcoin price is rising steadily above the $95,000 zone. BTC is showing positive signs and might soon hit the $100,000 milestone level.
- Bitcoin started a fresh increase above the $95,000 zone.
- The price is trading above $95,000 and the 100 hourly Simple moving average.
- There is a key bullish trend line forming with support at $95,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it clears the $100,000 resistance zone.
Bitcoin Price Sets Another ATH
Bitcoin price remained supported above the $92,000 level. BTC formed a base and started a fresh increase above the $95,000 level. It cleared the $96,500 level and traded to a new high at $98,999 before there was a pullback.
There was a move below the $98,000 level. However, the price remained stable above the 23.6% Fib retracement level of the upward move from the $91,500 swing low to the $98,990 high. There is also a key bullish trend line forming with support at $95,200 on the hourly chart of the BTC/USD pair.
The trend line is close to the 50% Fib retracement level of the upward move from the $91,500 swing low to the $98,990 high. Bitcoin price is now trading above $96,000 and the 100 hourly Simple moving average.
On the upside, the price could face resistance near the $98,880 level. The first key resistance is near the $99,000 level. A clear move above the $99,000 resistance might send the price higher. The next key resistance could be $100,000.
A close above the $100,000 resistance might initiate more gains. In the stated case, the price could rise and test the $102,000 resistance level. Any more gains might send the price toward the $104,500 resistance level.
Downside Correction In BTC?
If Bitcoin fails to rise above the $100,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $98,000 level.
The first major support is near the $96,800 level. The next support is now near the $95,500 zone and the trend line. Any more losses might send the price toward the $92,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $96,800, followed by $95,500.
Major Resistance Levels – $99,000, and $100,000.
Market
This Is Why XRP Price Rallied By 25% and Could Soon Hit $2
Ripple’s (XRP) price rallied by 25% in the last 24 hours following Gary Gensler’s announcement that he would resign as the US Securities and Exchange Commission (SEC) chair on January 20, 2025.
This development comes as a relief to the popular “XRP Army,” which has had to deal with suppressed price action due to the Gensler-led SEC’s nonstop petitions against Ripple. But that is not all that happened.
Ripple Bears Face Notable Liquidation Following Gensler’s Notification
Gensler’s announcement appears to be a positive development for the broader crypto market. But XRP holders seemed to benefit the most. This was particularly significant given the unresolved Ripple-SEC legal issues that have persisted throughout the SEC Chair’s tenure.
As a result, it came as no surprise that XRP price rallied and outpaced those of any other cryptocurrency in the top 10. Furthermore, the development triggered liquidations totaling $26.11 million over the last 24 hours.
Liquidation occurs when a trader fails to meet the margin requirements for a leveraged position. This forces the exchange to sell off their assets to prevent further losses. In XRP’s case, the liquidation primarily resulted in a short squeeze.
A short squeeze happens when a large number of short positions (traders betting on price declines) are forced to close, driving the price higher as they rush back to buy back the asset.
At press time, XRP trades at $1.40 and currently has a market cap of $80.64 billion. With Gensler almost gone, crypto lawyer John Deaton noted that XRP price gains could be higher, and the market cap could climb to $100 billion.
“XRP soon will achieve a $100B market cap. Times are changing,” Deaton wrote on X.
Meanwhile, CryptoQuant data shows that the total number of XRP sent into exchange has significantly decreased. Typically, high values indicate increased selling pressure in the spot market. This is because it suggests that more assets are being offloaded, potentially driving prices lower.
However, since it is low, XRP holders are refraining from selling. If this remains the case, the token’s value could rise higher than $1.40.
XRP Price Prediction: $2 Coming?
According to the 4-hour chart, XRP has been trading within a range of $1.04 to $1.17 since November 18. This sideways movement has resulted in the formation of a bull flag — a bullish chart pattern that signals potential upward momentum.
The bull flag begins with a sharp price surge, forming the flagpole, driven by significant buying pressure that outpaces sellers. This is followed by a consolidation phase, where the price retraces slightly and moves within parallel trendlines, creating the flag structure.
Yesterday, XRP broke out of this pattern, signaling that bulls have seized control of the market. If this momentum persists, XRP’s price could surpass $1.50, potentially approaching the $2 threshold.
However, this bullish scenario hinges on market behavior. If holders decide to secure profits, selling pressure could push XRP’s price below $1, erasing recent gains.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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