BONK outperforms Solana

May 22, 2024

Reading time: 5 minutes

PEPE Futures Open Interest hits two-month high amid crypto market rally

Key points:

  • Positive funding rates and high profitability ratios suggest strong bullish sentiment among Pepe investors.

  • Data shows 97.3% of Pepe holders are currently in profit.

News - The resurgent rally in the cryptocurrency market is fueling a surge in Pepe [PEPE] futures, with open interest reaching a two-month high, according to data from Coinglass.

At the time of writing, Pepe's futures open interest sat at $121 million, reflecting a significant 14% increase in just the last 24 hours. A rising open interest suggested that more market participants have been entering new positions.

On-chain analysis - Further bolstering the positive outlook, Pepe's funding rates stood at a healthy 0.0156%. Positive funding rates signaled strong demand for long positions. This is often seen as a precursor for continued price appreciation.

Pepe investors have been largely profitable. A whopping 97.30% (229,120 wallet addresses) of all Pepe holders were "in the money," meaning they have been holding their coins at a profit. Conversely, only 3% (6,330 addresses) were underwater, having purchased Pepe when its price was above $0.000012.

However, a note of caution is warranted. Despite the double-digit rally, Pepe's Market Value to Realised Value (MVRV) ratio suggested an overvalued state. Hence, a trend reversal, in the short term, can't be ruled out.

Trump Presidential campaign embraces crypto donations, pledges to build "Crypto Army"

Key points:

  • Trump's campaign aims to gather a "crypto army" to counter what it sees as opposition to cryptocurrency.

  • Despite lacking specific cryptocurrency policies, Trump's supporters view this move positively.

News - Donald J. Trump's presidential campaign said it will take cryptocurrency donations, making him the first major party candidate to do so. This move comes after Trump called himself the "crypto candidate" at a Mar-a-Lago event, putting cryptocurrency in the spotlight for the 2024 campaign.

Trump's team wants to gather a group of cryptocurrency supporters, calling it a "crypto army," to go against what they see as a group of people who don't like cryptocurrency, led by Senator Elizabeth Warren.

What’s more? Even though Trump hasn't said exactly what he plans to do about cryptocurrency, his supporters are happy about this news, especially because the Biden administration hasn't been very supportive of cryptocurrency.

Cryptocurrency is becoming a big deal in politics, and it's affecting how Democrats are making decisions. Recently, House Democrats decided not to push their members to vote against a new bill about cryptocurrency.

This is a big change in politics, with a former president getting involved with cryptocurrency during an election. While we don't know exactly what Trump will do about cryptocurrency, deciding to accept cryptocurrency donations shows that he wants to connect with a part of the economy and public conversation that's becoming more and more important.

BlackRock's Bitcoin ETF dominates inflows, leads surge in U.S. Spot Bitcoin ETFs

Key points:

  • BlackRock's IBIT ETF received a record $290 million inflow on 21 May.

  • This surge reversed a recent trend of low activity for the fund.

News - BlackRock's iShares Bitcoin Trust (IBIT) raked in a massive $290 million on 21 May, according to Farside Investors. This surge represents the highest daily inflow for the fund since 5 April and reverses a recent trend of minimal activity. Notably, this single day's inflow surpassed the combined total IBIT has seen over the past three weeks.

This influx coincides with a broader trend of renewed interest in spot Bitcoin ETFs. Over the past four trading days, these funds have collectively garnered over $1 billion, mirroring a recent Bitcoin price rally.

More details - BlackRock's IBIT is now nearing the top spot in the industry. With the latest inflow, its total inflows since launch have reached $16 billion, placing it close behind Grayscale's Bitcoin Trust (GBTC) which boasts $20 billion in assets under management (AUM).

While BlackRock's IBIT dominated Tuesday's inflows, it wasn't entirely smooth sailing for all Bitcoin ETFs. The VanEck Bitcoin Trust ETF and the Bitwise Bitcoin ETF experienced minor outflows of $5.9 million and $4.2 million, respectively. Fidelity's Wise Origin Bitcoin Fund saw modest inflows of $25.8 million, while the remaining ETFs registered neutral movement.

BONK's price rises, outperforming Solana amidst volatile market movement

Key points:

  • Bonk's price surged 20.04% in 24 hours, reaching near its all-time high.

  • Its performance significantly outpaced that of Solana.

News - BONK, the memecoin built on the Solana blockchain, saw a significant price increase of 20.04% in the last 24 hours. This surge pushed the token close to its all-time high of $0.000032 on 21 May, though it has since dipped slightly to $0.000031.

Notably, Bonk's impressive performance dwarfed that of Solana (SOL), the native token of its host blockchain, which only saw a modest gain of 2.58% during the same period.

What does it suggest? This stark difference in performance suggests a potential decoupling between Bonk and SOL. Historically, the two tokens have exhibited a strong correlation, but this recent divergence might indicate Solana's underperformance compared to other major cryptocurrencies.

While Bonk's price is on the rise, social media buzz surrounding the token remains subdued. However, looking ahead, analysts believe Bonk's price has room for further growth. Well, despite Bonk's potential, its success remains intertwined with Solana's performance.

A significant price drop in SOL could drag Bonk down with it. Nevertheless, Bonk's recent surge and its future prospects suggest the memecoin has the potential to increase its value by five times within the next few months.

Did you know?

  • Pharmaceutical companies are exploring blockchain's potential to track and verify the authenticity of medication throughout the supply chain.

  • With the rise of cryptocurrencies, several central banks worldwide are researching and developing their own digital versions of national currencies.

  • EOS, a blockchain-based service, raised a whopping $ 4.1B over the course of a year-long ICO that closed in June 2018.

Top 3 coins of the day

Key points:

  • At press time, LINK was trading at $16.78 with bulls in charge.

  • LINK's OI-Weighted Funding Rate increased after 20 May.

What you should know - LINK has surged 28.64% in the past week, fueled by a spike in demand that pushed the price toward its monthly resistance at $17.35. This level, along with $20.71, has previously acted as a strong supply zone, potentially indicating selling pressure ahead. However, there's also support at $13.23-$12.78, which has held firm despite a few breaches. The RSI reaching 63 suggests momentum is building, but nearing overbought territory. If LINK can overcome the $17.35 resistance, a breakout towards the $20.71 zone is possible. Conversely, a drop below $12.78 could signal a pullback.

Polygon (MATIC)

Key points:

  • MATIC’s Futures Open Interest has been moving sideways since 20 April.

  • The coin was up 10.10% in the last seven days.

What you should know - MATIC has consolidated in a narrow trading band of $0.6448-$0.7698 since mid-April, following a significant price drop of 42.57% from its $1.27 peak in mid-March. At press time, MATIC was trading near the upper Bollinger Band, indicating the coin was nearing overbought levels in the short term. The reading of Volume Oscillator at 1.15% suggested neutrality, meaning the market volume was neither low nor very high. A breakout above the current trading range could signal a trend reversal towards higher prices, while a drop below $0.6997 could indicate further downside. The next few days will be crucial in determining MATIC's future direction.

Uniswap (UNI)

Key points:

  • UNI was trading at $9.29, at the time of writing.

  • It registered a phenomenal 35% increase in the last week.

What you should know - UNI recently displayed a bullish sign, breaching its short-term resistance at $8.20 on 20 May. This level has now transformed into a support zone, offering a potential buying opportunity. The next hurdle for UNI lies at $10.715, which will determine the strength of the current uptrend. However, caution was advised. The lack of clear directional bias was evident from the MACD and signal line lingering below the neutral line. If selling pressure intensifies, UNI could swiftly drop back down to its new support at $8.20, or even further to $6.244. A confirmed breakout above $10.715 would be a strong bullish signal, while a drop below $8.20 could indicate a reversal of the recent gains.

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