Will Bonk Recover Following a $10 Million Drop in Open Interest?
BONK’s Open Interest indicates that investor confidence has collapsed as a result of the price decrease. OI fell from $24 million to $16 million before slightly rising to $17.27 million.
OI declined substantially, indicating pessimism despite a positive funding rate that favours lengthy contracts. If investor confidence declines, prices may fall much further.
BONK is presently at $0.00003323, with technical indicators pointing to support and resistance levels.
BONK Investors Lose Confidence as Open Interest Falls
Open Interest indicates that BONK’s price decline is harming investor confidence. On Saturday,
OI fell $8 million, from $24 million to $16 million.
However, it increased 0.09% to $17.27 million on Sunday.
The funding rate is positive, implying a majority of long contracts, but the significant decrease in OI indicates BONK is bearish.
If investor confidence does not improve, this drop in OI could lead to lower prices.
Key points:
Open Interest: $8 million dropped in 48 hours.
Open Interest: $16 million; now over 17 million.
Funding Rate: Positive, favouring long-term contracts.
Open Interest (OI): What Does It Mean?
You?
Open Interest (OI) refers to the number of unsettled derivative contracts such as futures and options. It demonstrates asset liquidity and trading activity.
A lower OI indicates declining market interest, whereas a higher OI indicates growing interest.
The recent drop in OI from $24 million to $16 million, followed by a modest comeback to $17.27 million, implies a lack of investor confidence, which could harm BONK’s stock price.
Bonk Price Forecast The 4-hour chart shows BONK at $0.00003323. The green line depicts the pivot point, which is $0.00003536.
The resistance is $0.00003802, $0.00004013, and $0.00004261, while the support is $0.00003240, $0.00003014, and $0.00002787.
Bonk Price Forecast
Trading View: Bonk Price Prediction
The 50-day Exponential Moving Average (50 EMA) is $0.00003482, and the Relative Strength Index (RSI) is 39.79, indicating an oversold condition.