BONK price surged 21.5% as ETF news creates market excitement

The memecoin BONK on the Solana platform recorded the most impressive bullish level of the day, soaring 21.5% in just the last 24 hours. This strong rise to the sky occurs against the backdrop of the crypto market in general bouncing back.

However, the main driver behind the BONK rise to the sky comes from the renewed interest of investors, especially after rumors about the possibility of launching a leveraged ETF linked to this memecoin.

Trader places big bets on BONK as potential ETF approaches

Recently, Tuttle Capital submitted an amendment after the effective registration statement to the U.S. Securities and Exchange Commission (SEC) for the proposed leveraged ETF product suite, which includes the 2x Long BONK ETF. This filing indicates that the product could officially launch and begin trading as early as July 16.

The information has reignited excitement for BONK, as traders rush to participate in the market based on expectations that the new ETF could attract more significant capital inflows and strong interest from institutional investors. This interest is clearly reflected in the substantial increase in the token’s net spot inflow. As of now, the net inflow has reached 1.68 million dollars, more than a 100% increase in just one day.

The spot inflow/outflow of BONK | Source: CoinglassThe net spot capital flow reflects the amount of money flowing directly into an asset through buy transactions, indicating the increasing interest and demand from investors. When the net spot capital flow rises to the sky, this is a clear sign that market sentiment is shifting towards a bullish trend.

The increase in BONK’s net capital flow demonstrates the growing confidence of investors in this asset, while also creating positive pressure that helps push the price up as capital continuously flows into the market.

In addition, the positive funding rate of this memecoin also reinforces the bullish outlook. As of now, the funding rate has reached 0.0085%, indicating that the majority of traders in the futures market are leaning towards Long positions rather than Short.

The funding rate of BONK | Source: CoinglassThe funding rate is a periodic payment between traders in perpetual futures contracts, aimed at aligning the contract price closely with the spot market price. When the funding rate is positive, it indicates high demand for Long positions.

In other words, more and more traders are betting on the possibility that the price of BONK will continue to rise in the short term.

BONK breaks above the 20-day EMA signals a new bullish momentum

The strong rise in the price of BONK has helped this coin surpass the 20-day exponential moving average (EMA 20), currently forming a solid dynamic support level around the $0.000014 mark.

The 20-day EMA reflects the average price of the asset over the last 20 trading sessions, with a weighting that prioritizes more recent price levels, clearly illustrating short-term momentum. When the price stays above the 20-day EMA, it is often a positive signal indicating that the bullish trend may continue.

If the bulls maintain their strength and control the market, BONK has the potential to break through to the price range of 0.000018 dollars.

BONK Price Analysis | Source: TradingViewConversely, if the buying pressure weakens significantly, the price could drop below the 0.000016 dollar mark and even continue to fall towards deeper support around 0.000012 dollars.

Minh Anh