Bonk price continued its strong recovery on Wednesday as investors embraced a risk-on sentiment in the market. The token soared to a high of $0.00002753, its highest point since April 1st. It has soared by over 115% from its lowest level this month, making it the best-performing meme coin in the market.
Risk-on sentiment
Bonk, one of the biggest meme coins in Solana ecosystem, is doing well as investors embrace a risk-on sentiment.
It has joined other cryptocurrencies that have rebounded this week. Hedera Hashgraph price jumped by over 70% on Wednesday while Bitcoin has moved above the crucial resistance at $67,000.
Global stocks have also continued rising. In the US, the Dow Jones and the Nasdaq 100 index has also risen in the past two straight days. Similarly, in Europe, key indices like the FTSE 100, FTSE MIB, and the German DAX have all soared to their highest levels on record.
Meanwhile, the US dollar index has pulled back in the past few days. It moved from last week’s high of $106.20 to $105 as geopolitical risks fade. That happened after Israel launched a limited attack on Iran last week.
Bonk price is also soaring as investors buy the dip after the token crashed by over 74% from its highest point this year to its lowest point this month. It is not uncommon for a financial asset to bounce back after a huge dip.
Bonk token also jumped as part of the ongoing rebound of meme coins. Pepe token jumped by over 15% in the past 24 hours while dogwifhat, MAGA (TRUMP), cats in a Dog World, and Book of Meme also rose by double digits.
Further, data shows that the token soared in a high-volume environment. According to CoinGecko, the volume on Wednesday stood at over $323 million, higher than Tuesday’s $177 million.
Bonk price forecast
The daily chart above shows that the price of Bonk has staged a strong recovery in the past few days. It has remained above the ascending trendline that connects the lowest levels since January 9th of this year. The token has also soared above the 50-day moving average, which is a bullish sign.
Meanwhile, the Relative Strength Index (RSI) has drifted upwards and moved above the neutral point of 50. Other oscillators have all bounced back in the past few weeks.
Therefore, the outlook for the token is bullish, with the next point to watch being at $0.000035, its highest point on December 15th. This price is about 30% above the current level.
