The BONK price recently dropped, which made investors less confident. This drop is shown in the Open Interest (OI) for the asset. OI went down from $24 million to $16 million, but it’s now at $17.27 million after a slight recovery.
Even though long contracts are favored by a positive funding rate, the big drop in OI indicates that investors might be feeling bearish. If this lack of confidence continues, it could lead to more price drops.
At the time of writing, BONK price is at $0.00003347. Technical indicators suggest there are certain levels where the price might find strong support or face resistance.
Source: CoinMarketCap
Investor Confidence Wanes as BONK’s Open Interest Declines
BONK’s price drop is affecting how confident investors feel, and you can see this in the Open Interest (OI) for the asset. OI went down by $8 million, dropping from $24 million to $16 million on Saturday. But it bounced back a bit to $17.27 million on Sunday, showing a small 0.09% increase.
Even though the funding rate is positive, meaning more people are making long contracts, the big drop in OI suggests that investors might be feeling negative about BONK.
If investor confidence doesn’t get better, this drop in OI could cause BONK’s price to fall even more.
In the span of 48 hours, the Open Interest (OI) for BONK dropped by $8 million. Currently, the OI stands at $16 million, but it has since slightly increased to over $17 million. Despite this drop in Open Interest, the funding rate remains positive, indicating a preference for long contracts.
Understanding Open Interest (OI) and Its Impact
Open interest measures the total number of outstanding derivatives contracts, such as futures or options, that have not been closed. It helps to analyze the mobilization and liquidity of an asset.
A higher OI indicates more interest and participation in the market, while a lower OI suggests declining interest.
In the context of BONK, the recent drop in OI from $24 million to $16 million, despite a slight recovery to $17.27 million, indicates reduced investor confidence, which could negatively affect its price.
Bonk Price Forecast
The current price of BONK is $0.00003347, according to the 4-hour chart. The pivot point, marked by the green line, is at $0.00003536.
Immediate resistance levels are seen at $0.00003805, $0.00004015, and $0.00004265, while immediate support is found at $0.00003230, then $0.00003012 and $0.00002785.
Technically, the Relative Strength Index (RSI) is around 40, showing that the market might be oversold, and the 50-day Exponential Moving Average (50 EMA) is at $0.00003480.
Source: TradingView
There’s an upward trendline supporting BONK near the $0.00003240 level, and a double bottom pattern reinforces this. This suggests that the uptrend may continue if the price stays above $0.00003230.
To sum up, think about buying BONK if it goes above $0.00003230, but be cautious if it drops below this level, as it might indicate a sell-off.
Disclaimer: The text above is an informative article. Before investing in crypto, be sure to understand and gather information about its volatility.
