BONK hits new all-time high following Upbit listing

BONK became one of the top gainers among the top 100 assets following the big announcement by South Korean crypto exchange Upbit.

Bonk (BONK), the first Solana-based meme coin, rose 18% on Wednesday to hit an all-time high of $0.000058. Its market cap has risen to over $4.1 billion at the time of writing, reversing Dogwifhat’s (WIF) $3.2 billion market cap, reclaiming its position as the largest meme coin on the Solana blockchain.

Why is BONK rising?

The altcoin’s price increase coincided with an increase in the meme coin’s futures open interest. According to data from CoinGlass, OI for BONK’s futures market rose to an all-time high of $53.5 million; This was more than 7 times the monthly low of $6.3 million, indicating increased demand from investors.

Bonk’s latest rally comes after it was listed on Upbit, South Korea’s largest crypto exchange. BONK’s daily trading volume increased by 95% at the time of listing, reaching over $3.5 billion.

Another key factor driving the altcoin’s gains is the Bonk DAO’s announcement of a massive 1 trillion token burn planned for Christmas Day, which will reduce the total number of tokens in circulation and thus increase scarcity.

Whales have also been interested in meme money lately. According to data shared by Lookonchain, a whale with a history of profitable meme coin investments spent 3.4 million USDC to purchase 65.4 billion BONK tokens. Last week another whale was seen collecting 29.32 billion BONK at $0.0000387.

Whale buying often increases retail investors’ confidence in an asset and potentially triggers FOMO (fear of missing out) among those looking for quick gains.

The upward momentum will continue

BONK’s rally has not lost its strength, although it rose over 72% last week alone. On the 1-day BONK/USDT price chart, BONK’s EMA lines show a strong uptrend; The short-term 50-day EMA is above the long-term 200-day EMA and the price remains above both lines.

BONK price, 50-days EMA and 200-days EMA — November 20 | Source: crypto.news

Based on this setup, the uptrend is expected to continue in the short term as buyers maintain control. However, the Relative Strength Index showed a value of 82; This confirms the bullish momentum but places the meme coin at overbought levels.

BONK RSI chart — November 20 | Source: crypto.news

Despite the overbought situation, one analyst suggests that BONK is experiencing a ‘Blue Sky breakout’ that could continue its upward trend in the coming days.

This speculation is supported by the current excitement around meme coins and strong catalysts driving the uptrend. Separately, Bitcoin’s recent rise to new highs has strengthened market-wide sentiment and further increased interest in the meme coin sector, which is up 2.3% in the past day.