HomeNewsBONK’s Open Interest Drops by $8 Million in 48 Hours, What's Next?

BONK’s Open Interest Drops by $8 Million in 48 Hours, What’s Next?

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  • BONK’s price decline led to an $8 million drop in Open Interest.
  • The positive funding rate favors long contracts, but bearish sentiment persists.

BONK’s recent price collapse has resulted in a severe drop in investor confidence, as evidenced by the asset’s Open Interest (OI).

CoinMarketCap data show that BONK is now trading at about $0.00003317, down 3.03% in the last day and 3.72% lower than it was seven days ago. The OI dropped from $24 million to $16 million, then somewhat recovered to $17.27 million, which worries investors.

The dramatic decline in OI indicates a pessimistic attitude among investors, despite the fact that the positive funding rate favors long contracts. Should this tendency persist, prices may drop even further.

Open Interest and Its Implications 

Total outstanding derivative contracts, such as futures or options, that have not been settled are known as open interest (OI). It offers insight into the liquidity and trading activity of an asset.

Source: Coinglass

A higher OI reveals greater interest and involvement in the market, while a lower one reveals declining interest. Regarding BONK, the OI decline from $24 million to $16 million, with a little rebound to $17.27 million, suggests a decline in investor confidence that could have a detrimental impact on its price.

What’s Next: BONK Price Analysis and Predictions

The trading price for BONK is $0.00003317 right now. Following $0.00003014 and $0.00002787 as immediate support levels, technical analysis places immediate resistance levels at $0.00003802, $0.00004013, and $0.00004261.

Source: TradingView

The 39.79 Relative Strength Index (RSI) indicates oversold conditions. A 50-day Exponential Moving Average (EMA) equals $0.00003482.

A double bottom formation and an upward trendline are supporting BONK close to the $0.00003240 level. This implies that, should the price stay beyond $0.00003240, the rise may continue.

A break below this level could indicate a sell-off; hence, investors may choose to buy BONK above it.

On the other hand, ETHNews previously covered FLOKI, another dog-themed meme coin, which put forth a bold proposal to burn 15.246 billion of its tokens.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628