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Bonk And Dogwifhat Boosted Off Solana Spot ETFs News — Will SOL Memecoins Reach New Heights?

Last Updated July 2, 2024 2:48 PM
Nikola Lazic
Last Updated July 2, 2024 2:48 PM

Key Takeaways

  • Solana ETFs may spark altcoin rally.
  • BONK up 48%, WIF up 57% recently.
  • BONK, WIF showing bullish reversal signs.

VanEck has filed for a Spot Solana ETF, which experts believe could trigger a price rally for certain altcoins. The announcement has already caused Solana (SOL) to surge, and the hype around Spot Solana ETFs is expected to inject fresh momentum into the market. 

Thus, Solana-based memecoins such as Bonk (BONK) and Dogwifhat (WIF) have seen notable gains. As they are expected to benefit from the Spot Solana ETFs, the buying ahead could have already begun. BONK has increased 48% since June 24, while WIF is up 57%. This came after a period of gradual decrease, meaning it could be time for a major reversal. 

BONK Price Analysis 

On March 5, 2024, BONK reached an all-time high of $0.00003771, a nearly 400% surge from its February low. This peak was followed by a significant 75% decline, bringing the price down to $0.000012 by April 13.

BONK
BONKUSD | Credit: Nikola Lazic/Tradingview

On May 29, BONK ended its uptrend at $0.000044 in a three-wave manner. This was followed by a downturn, with the price falling to a low of $0.000020 on June 24, a 55% decrease. A bounce was made from the 0.786 Fibonacci level, causing a slight recovery. 

The daily chart RSI fell to its oversold zone at 32% on June 23 and has since increased with the rising price. MACD showed a positive cross on its moving averages on June 27, further validating the starting uptrend. 

If the price rises and reaches $0.000033 at the 0.382 Fib, its first sub-wave could be concluded in a larger five-wave impulse. Should we see a significantly higher low on the following downturn, BONK could be set to exceed its all-time high and come to $0.000060 by the end of this new bull phase. 

WIF Price Analysis 

WIF peaked at nearly $5 on March 31, marking the end of a dramatic uptrend that began in February from a low of $0.20, representing a 3000% increase. This surge followed a five-wave impulse pattern, which culminated in a downturn. By April 13, WIF had dropped to $1.98, but it quickly recovered, closing above $2.30.

WIF
WIFUSD | Credit: Nikola Lazic/Tradingview

Since then, WIF has been climbing within an ascending channel, achieving progressively higher highs and reaching just above $3.80 on May 29. Although WIF attempted to break out above the resistance line, it was rejected.

As of June 24, WIF made a lower low of $1.50 than April 13, potentially finishing its 85-day correction. The daily RSI was 27% on June 23, indicating extreme oversold conditions. The price has recovered by nearly 60%, measured to today’s high of $2.35. MACD’s moving averages converged positively on June 27, indicating an uptrend start. 

WIF is likely setting the stage for a new bullish phase that can last in the next few months and potentially lead to a new all-time high above $5. However, we’ve just seen early signs, and the price structure is yet to develop, proving or disproving this assumption. 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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