- Solana-based meme token BONK hits an all-time high.
- Last week’s rally was triggered by the listing of KuCoin.
Shiba Inu-themed token BONK has reached an all-time high. This follows the token’s listing on cryptocurrency exchange KuCoin in late November.
Trading at $0.0000125 at press time, the price of this dog-themed cryptocurrency asset has risen 200% in the past seven days. According to CoinMarketCap’s According to data, BONK ranked as the highest-grossing cryptocurrency asset last week.
Volatility increases due to surge in demand for BONK
BONK has seen a significant surge in demand over the past week as many expect a “Coinbase effect” to emerge following KuCoin’s listing.
Reading the token’s price action shows that key momentum indicators have risen sharply since December 4th.
At press time, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) hit overbought highs of 87.32 and 94.63, respectively.
These values show that buying pressure has exceeded token distribution, but buyer fatigue is common at these levels. This is because buyers generally find it difficult to sustain further price increases. Therefore, price downside is generally expected at these peaks.
The rapid increase in demand for BONK and the resulting price increase has led to increased market volatility.
AMBCrypto noticed that the gap between the upper and lower bands of the BONK Bollinger Bands (BB) has steadily widened over the past week.
A gradual widening of these bands usually indicates increasing market volatility. The coin’s Bollinger Bandwidth, which subsequently increased, confirmed the increase in volatility.
Additionally, BONK was trading above the upper band of the BB indicator at press time. If an asset’s price is trading above this band, it means that the asset may require an adjustment.
This is because prices above average are considered unsustainable in the short term.
How much is 1,10,100 BONK worth now?
Another indicator that suggests increased volatility is BONK’s Average True Range (ATR).
This indicator measures market volatility by calculating the average range between the highest and lowest prices over a specified period. BONK’s ATR has been trending upward since December 5th.
Source: TradingView