- 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.
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.
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.
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.
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.