BONK Token Continues To Soar, Jumps 157% in 24 hours as SOL Liquidity Providers Join The Fun

Key Takeaways:

  • BONK's uptrend continues to generate hype and attract traders looking to profit during the crypto downtrend.
  • However, SOL price failed to maintain its uptrend on Jan 4.
BONK Token Continues To Soar, Jumps 157% in 24 hours as SOL Liquidity Providers Join The Fun
Solana liquidity providers enjoyed nearly 1,000% returns from Bonk tokens.

NEW DELHI (CoinChapter.com) — The latest canine-themed crypto token, Bonk price has been rising steadily since its launch on Dec 25 last year.

BONK price grew more than 157% over the last 24 hours to reach a daily high of $0.0000026. The token’s gains on Jan 4 mean BONK price has returned more than 2,446% to its traders since its launch. Bonk’s uptrend derived some bullish cues from the investor interest in its airdrop.

BONK Inu token price action over the last seven days
BONK Inu token price action over the last seven days. Source: CoinMarketCap

As CoinChapter reported, the Bonk Inu airdrop would amount to 50% of the total supply of nearly 1 Quintillion tokens (99,867,657,417,668 BONK). Scant details are available on the token, with no link to the project’s whitepaper on Bonk’s threadbare website.

Per Bonk Inu’s announcement, 20% of the total airdrop supply would go to Solana NFT collections, comprising about 297,000 individual NFTs, and 10% to Solana-focused artists and collectors. Of the remaining, 15% would go to early open-book traders.

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Lastly, Bonk Inu reserved the remaining 5% of the airdrop for Solana developers. However, early investors were not the only ones who enjoyed massive gains from BONK’s meteoric rise. Liquidity pools on Solana-based DEXs such as Orca attracted more than $23 million in 24-hour volumes.

BONK/SOL trading pair offered nearly 1,000% APY returns.
BONK/SOL trading pair offered nearly 1,000% APY returns.

As a result, liquidity providers earned thousands of dollars in fees. The BONK/SOL trading pair offered nearly 1,000% returns, paying out nearly 24% daily to liquidity providers.

Several Solana projects have adopted BONK tokens as a payment option for their NFTs. However, the returns from BONK are likely to slow down once the hype surrounding the dog-themed token dies down in the coming weeks or when traders start booking profits.

SOL Bears Defend EMA Resistance

Meanwhile, SOL price’s recent spike fizzled out near the 50-day EMA (purple wave). The Solana token spiked nearly 11% to reach a daily high of $14.2 before bears started to sell aggressively and pared the day’s gains.

Holding above $14 remains a difficult target for SOL bulls. If the downtrend continues, SOL price might end up testing support from its 20-day EMA (red wave) near $12. Breaching below the EMA resistance could force the Solana token to $10.3 before bulls recover.

Solana (SOL) price failed to clear 50EMA resistance
SOLUSD daily chart with RSI. Solana price failed to clear 50EMA resistance. Source: Tradingview.com

However, if SOL continues to attract investors through the BONK-generated gype, Solana price might target resistance near $14.2. Moreover, a break and hold above immediate resistance might help SOL price reach $16.5 before downside corrections pare gains.

The relative strength index’s trendline reversed direction after a near-vertical rise since Jan 1 but remained neutral with a value of 56.15 on the daily timeframe.

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