BONK Surges 22% on Leveraged ETF Hopes

BONK, a meme coin based on the Solana blockchain, saw a notable 22% increase in value over the past 24 hours, driven by a broader recovery in the cryptocurrency markets. This surge is primarily attributed to renewed investor interest surrounding the potential launch of a leveraged exchange-traded fund (ETF) tied to the digital asset.

Tuttle Capital recently submitted a post-effective amendment to the Securities and Exchange Commission for a suite of leveraged ETFs, including a 2x Long BONK ETF. According to regulatory documents, this product could go live as early as July 16. This development has reignited enthusiasm around BONK among both retail and institutional traders, who are speculating that the ETF could attract additional capital inflows and institutional attention to the previously overlooked meme coin.

The growing interest in BONK is evident through the token's rising spot net inflow metrics. The current netflow totals $1.68 million, climbing over 100% during the past day. Spot net inflow tracks capital entering an asset through direct purchases, serving as an indicator of growing investor interest and demand. When an asset's spot net inflows climb, it typically signals bullish sentiment in the market.

BONK's rising net inflow reflects growing investor confidence in the asset and could contribute to upward price pressure as more capital flows into the market. The meme coin's positive funding rate of 0.0085% confirms this bullish outlook, signaling a preference for BONK long positions over shorts among futures market participants. The funding rate represents a periodic payment between traders in perpetual futures contracts designed to keep the contract price aligned with the spot price. When the funding rate is positive, higher demand exists for long positions. This means more traders are betting on BONK's price extending its gains in the short term rather than declining. The technical setup supports this view as the price spike pushed BONK above its 20-day exponential moving average.

The surge in BONK's price has driven it above its 20-day exponential moving average, which now forms dynamic support below the current price at $0.000014. The 20-day EMA measures an asset's average price over the past 20 trading days while giving more weight to recent prices. When an asset's price trades above its 20-day EMA, it signals short-term bullish momentum and potential continued upside. If bulls retain control of the market, they could drive BONK's price toward $0.000018 in the near term. Conversely, if demand plunges and selling pressure increases, the altcoin's price could break below $0.000016. Such a breakdown would likely send the token falling to $0.000012 as technical support levels fail.

The combination of ETF speculation, rising net inflows, and positive technical indicators suggests BONK may continue its upward trajectory in the coming days. However, meme coin investments remain highly speculative and subject to extreme volatility based on market sentiment and regulatory developments. The broader sentiment in the cryptocurrency market, which is increasingly looking beyond Bitcoin and Ethereum, and exploring other digital assets, including meme coins, is likely to continue, as more investors look to diversify their portfolios and explore new investment opportunities.