Bonk! ($BONK), the third largest meme coin by market cap and a flagship token of the Solana (SOL) ecosystem, dropped close to 10% on Tuesday, as the broader crypto markets succumbed to sell pressure following a promising start.
Solana (SOL), to which Bonk!’s fortunes are closely tied, dropped back to the $107s after pumping as high as $117 earlier in the day as Bitcoin pulled back from new highs for the year near $46,000 that it printed earlier in the day.
Bonk! was last changing hands around $0.0000135, with traders now monitoring whether the Solana-based meme coin will be able to hold above key support in the $0.0000125 area.
$BONK has pulled back more than 60% from its mid-December 2023 highs above $0.000035, though remains around 75x higher versus its October lows under $0.0000002.
Bonk Price Prediction – Can It Bounce?
Bonk!’s price action over the last few weeks doesn’t give much cause for optimism.
Rallies have continually been sold, and this suggests that it might just be a matter of time until $0.0000125 support is broken and $BONK retests its 50DMA just below $0.000011.
Near-term price predictions may thus remain bearish for now.
But Bonk! bulls shouldn’t completely lose heart yet.
Most analysts agree that the broader crypto market bull run is still in its early stages (having begun just over one year ago), which gives Bonk! plenty of time to make a comeback.
If this crypto bull run is going to be an even bigger one for meme coins, then Bonk!’s current market of $820 million, according to CoinMarketCap, suggests its remains at a reasonably favorable valuation, and investors could still bag gains in the region of 10 or more x.
On-chain data as presented in a Dune Analytics dashboard by @wagg shows that transactions have been cooling as of late.
But the number of users, which surged beyond 100,000 on the 29th of December, continues to rise, and was last at around 112,000, as per the dashboard.
That suggests new investors are flocking to buy the dip.
Crypto Alternatives to Consider
Meme coins can offer huge potential returns but also come with a lot of risk.
For those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilize affiliate links within our content, and receive commission.