- BONK is paving the way for an ETF after launching plans for ETP.
- The price action and financing rates are positive for BONK.
Bonk Inu [BONK] is creating buzz with its plans to launch the first-ever meme token exchange-traded product (ETP) in the US
During the Solana Breakpoint event, it was announced that BONK is partnering with Osprey Funds to launch the ETP by the end of the year. This move has investors excited as BONK’s price is expected to soar higher, with a potential increase of over 200% expected in October.
As the first memecoin to pursue an ETP, BONK sets the stage for further growth and possibly an exchange-traded fund (ETF) in the future. Investors are eagerly awaiting updates on BONK’s progress.
BONK’s recent developments have influenced their price action. The BONK/USDT pair has now reached this crucial support level exactly three times, a level that resulted in a price increase of over 182% from April to May of this year.
However, the pair has experienced a decline since then, reaching the support zone again on August 5, when the entire crypto market hit six-month lows.
Source: TradingView
With the announcement of the Bonk ETP, which could lead to the first memecoin ETF, bullish sentiment is growing. The Bollinger Bands on the daily time frame are tightening, indicating a possible breakout.
The moving average convergence-divergence indicator (MACD) also shows growing buying momentum, suggesting the price could move higher soon.
BONK is now trading above the Bollinger Band average, indicating that positive sentiment is increasing.
BONK OI-weighted financing rates
Another bullish signal comes from OI-weighted financing rates, which have turned positive. This indicates that long traders are becoming increasingly optimistic about BONK’s price potential.
As of now, the OI-weighted financing rate is 0.0006%, while BONK is priced at $0.000018. This growing confidence among traders could help propel the stock to new highs, potentially reaching July highs and generating gains of over 110%.
Source: Coinglass
Sales volume and net short positions are decreasing
Selling volume and net short positions are also declining, further supporting the bullish outlook. The decline in contract transfers signals a decrease in selling pressure and a period of market consolidation.
This creates a favorable environment for a price increase, especially if demand remains strong and supply continues to decline.
With easing selling pressure and increasing long positions, BONK appears well positioned to recover and possibly surpass its previous highs.
Realistic or not, here is BONK’s market cap in BTC terms
BONK’s upcoming ETP launch, combined with waning selling pressure and rising bullish sentiment, could push its price higher.
Investors are anticipating a potential breakout that could send BONK back to its July high, marking a 110% gain and positioning it for further growth in the final quarter of 2024.
