Bonk, the second largest coin on Solana, rose after Rex shares filed for a spot exchange-traded fund.
Bonk (BONK) rose 6.5%, making it one of the best performing Solana (SOL) meme coins. The token has soared by around 26% over the past seven days.
The rebound came after Rex Shares, an asset management firm with more than $8 billion in assets under management, filed for an ETF. The company has also applied for other crypto ETFs, including those related to Ethereum, Bitcoin, Solana, Ripple (XRP), and Dogecoin.
Analysts believe that the Securities and Exchange Commission led by Paul Atkins will be more open to approving spot crypto ETFs. Gary Gensler, Atkins’ predecessor, had focused primarily on Bitcoin and Ethereum ETFs. It remains unclear, however, whether the SEC will approve funds for coins like Bonk.
Crypto ETFs have gained popularity among institutional investors. Bitcoin ETFs have attracted over $35 billion in inflows, while Ethereum funds have raised over $2.66 billion. However, most institutions should avoid allocating significant funds to coins like Bonk.
Launched in 2022, Bonk has become one of the largest meme coins, with a market capitalization of over $2.3 billion. Still, it faces increasing competition from other Solana-based meme coins like Fartcoin, Dogwifhat, and Gigachad.
Bonk Price Analysis: Can it go 10x from here?
BONK Price Chart | Source: crypto.news
The daily chart shows that Bonk price peaked at $0.00006 in December before dropping sharply to $0.00002490, forming a double bottom trend. A double bottom is a widely recognized bullish reversal indicator.
Bonk also created a falling wedge chart pattern, another popular bullish reversal pattern. The coin has surpassed its 50-day and 100-day moving averages and is gradually forming a bullish engulfing candlestick pattern.
As a result, the coin is likely to experience a bullish breakout, indicating further gains. The next level to watch is its 2024 high of $0.000060, representing a potential upside of 77% from the current price.
For Bonk’s price to increase 10x from here, it would need to reach $0.00033, approximately 900% above its current level. Although such a move is theoretically possible, it will likely take several years to achieve this goal.
