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Bonk saw renewed attention from investors as Bitcoin consolidated above the $68K spurring a broader rally in the meme coin market.
Bonk (BONK) rose 5.8% over the past day and 36% over the last 30 days with its market cap sitting at $1.71 billion at press time. The meme coin’s daily trading volume was up 76% over the past day hovering over $285 million.
Meanwhile, Bitcoin (BTC) was trading relatively flat, hovering above $68,000 while the global crypto market has slowly recovered from the slump seen a fortnight ago. The crypto market cap has jumped to $2.48 trillion from the Oct. 11 slump of $2.2 trillion.
It’s common to see altcoins, including memecoins, rally when Bitcoin consolidates. This is often because traders shift their focus to smaller, higher-risk assets in hopes of catching more significant short-term gains while Bitcoin stabilizes.
Bonk’s rally was also strengthed after news broke out that the meme coin is partnering with Osprey Funds, a New York-based firm known for bringing crypto assets into traditional markets to launch a BONK exchange-traded product which will be known as Osprey BONK Trust.
As with any crypto ETP, the move aims to lower barriers for traditional and institutional investors to access crypto.
Osprey Funds has already started accepting investments from its first batch of qualified investors. Following this phase, the trust will apply for the BONK ETP to be listed on secondary markets.
BONK traders are bullish
The community sentiment tacker on CoinMarketCap showed that traders were bullish on the meme coin and were expecting further upside. The surge in interest was evident as BONK was a trending search term on Google on Oct. 21.
On X, independent trader Unipics noted that Bonk looked ready to break out of a giant triangle pattern it had been consolidating since the beginning of March 2024. A breakout from this pattern is seen as a major sign of a bullish price reversal in technical analysis.
Technical indicators on the 1-day chart for the meme coin supported the bullish outlook. BONK’s current price was positioned near its Upper Bollinger Band while both lines of the Moving Average Convergence Divergence indicator were above zero suggesting a continuation of the bullish momentum leading to further price gains in the short term.
CoinGecko reports that memecoins were riding a wave of gains on Oct. 21, with their total market cap growing 1.7% in the last 24 hours, now sitting over $65 billion.
Some analysts believe this is just the beginning of a bigger trend. Crypto analyst Murad Mahmudov, for instance, predicts we’re entering a meme coin supercycle, with the market expected to reach its peak by the end of 2025.