BONK Surges 70% as Bonk.fun Launchpad Drives Demand

BONK, a Solana-based meme coin, has recently surged by 70% over the past 10 sessions, outperforming major cryptocurrencies such as Bitcoin and Dogecoin. This remarkable price increase is attributed to several factors, including a shift in overall market sentiment, a breakout above a descending trendline, and the explosive growth of the Bonk.fun launchpad.

The Bonk.fun launchpad has seen significant activity, logging six consecutive days with fees over $1 million, peaking at $1.27 million on July 11. In total, the platform generated $7.93 million in just seven days. According to a crypto expert, 58% of these fees are used to buy back BONK, injecting steady demand into the market. This structural tailwind has not yet been fully priced in by many traders, contributing to the meme coin's momentum.

Bonk.fun's success has been notable, recently surpassing Pump.fun in daily revenue, launch volumes, and Solana-based token deployments. At one point, Bonk.fun claimed 61% of the total 24-hour launchpad revenue, solidifying its leadership position. However, this strong growth has pushed BONK to a key resistance level, raising concerns about a potential price decline.

At the time of reporting, BONK was trading near $0.00002508, up over 13% in 24 hours. This price gain has outperformed major cryptocurrencies and brought BONK back to a familiar resistance level of $0.00002626. This level has historically been a battleground for the meme coin, with previous surges followed by reversals. The current market sentiment suggests that if the momentum continues, BONK could break through this resistance and potentially reach $0.0000364, a 37% increase. However, if it fails to break out, history may repeat itself, and the price could dip again.

Despite being in overbought territory, with the Relative Strength Index (RSI) at 70, investors and long-term holders appear to be accumulating BONK. Data from CoinGlass revealed that exchanges have recorded an outflow of over $1.88 million worth of BONK, indicating strong buying pressure. This outflow suggests that investors remain bullish on BONK, which could support its price in the near term.

In summary, BONK's recent price surge is driven by the growth of the Bonk.fun launchpad and steady buybacks. While the meme coin faces a key resistance level, the strong buying pressure and bullish market sentiment could push it beyond its April ceiling. However, investors should be cautious as the asset is in overbought territory, which could lead to a short-term price correction.