The Solana-based meme coin BONK is today's top gainer, surging 22% over the past 24 hours. This rally occurred as the cryptocurrency market generally rebounded.
However, BONK's rise is primarily driven by renewed investor interest ahead of the potential launch of a leveraged exchange-traded fund (ETF) linked to the asset.
Traders Make Large Bets on BONK…ETF Launch Imminent
Turtle Capital recently submitted a follow-up amendment to the SEC regarding a suite of leveraged ETF products, including a 2x long BONK ETF. This submission indicates the product could be launched on July 16th.
This has reignited passion for BONK, with traders flocking to speculations that an ETF could attract additional capital inflows and institutional interest. This interest is clearly reflected in the token's spot net inflows. At the time of writing, net inflows were $1.68 million, increasing by over 100% in the past day.
Spot net inflows track capital entering the asset through direct purchases, indicating increased investor interest and demand. Rising spot net inflows suggest bullish sentiment in the market.
BONK's increasing net inflows reflect growing investor confidence and can contribute to price appreciation as more capital enters the market.
Additionally, the positive funding rate for the meme coin confirms this bullish outlook. At 0.0085% at the time of writing, it indicates a preference for BONK long positions among futures market participants.
The funding rate represents periodic payments between traders in perpetual futures contracts, used to align contract prices with spot prices. A positive funding rate indicates higher demand for long positions.
This means more traders are betting that BONK's price will rise in the short term.
BONK Breaks 20-Day Moving Average…New Upward Momentum
BONK's price surge has pushed it above the 20-day exponential moving average (EMA), which is currently forming a dynamic support line below $0.000014.
The 20-day EMA measures the asset's average price over the past 20 trading days, giving more weight to recent prices. When an asset's price is above the 20-day EMA, it indicates short-term bullish momentum and potential for continued growth.
If the bullish trend continues, BONK's price could rise to $0.000018.
Conversely, if demand sharply declines, the altcoin's price could drop below $0.000016 and fall to $0.000012.
