BONK ETP: Will the new craze really ignite a price surge?

Bitcoin Capital – the issuer of (ETP) exchange-traded products and manager of cryptocurrency portfolios listed on Switzerland’s SIX Exchange – is preparing to launch the BONK ETP. The event will take place on November 27, opening up an opportunity for European investors to access this memecoin at a 1:1 ratio.

The move to launch the BONK ETP is expected to trigger a new wave of trading around the memecoin, especially with additional capital flow from EU investors. This could potentially boost trading volume significantly, though nothing is guaranteed.

Can the ETP Wave Save BONK?

The latest update is likely to trigger capital inflow into the memecoin right as BONK approaches a breakout, following more than four months of quiet accumulation.

BONK’s falling wedge pattern is essentially a correction phase from the rally that began at the current trading range. The previous momentum was fueled by “altcoin season,” which lasted until August and gave a boost to much of the crypto market.

Nevertheless, BONK’s price has dropped about 10% in the past 24 hours, reflecting the overall market downturn as Bitcoin (BTC) also fell below $85,000. Notably, daily trading volume has moved against the price trend, rising to $200 million.

NguSource: TradingView The current downward trend is clearly shown by the Bull Bear Power (BBP) indicator, indicating that bears are in control and increasing pressure. However, the selling pressure this time is not as strong as it was in mid-October, suggesting that market sentiment may gradually be turning positive.

If BONK attracts enough liquidity, expectations around the BONK ETP launch could act as a catalyst for a breakout from the current pattern. However, the risk lies in the possibility that bearish capital flows in more strongly than bullish, which could undermine any potential rally.

Given this, retail investors often tend to “capitulate” when the market bottoms and then recovers. In contrast, on-chain data shows that whales and experienced traders are viewing the market from a completely different perspective.

What Are Traders Doing On-Chain?

Data from CryptoQuant shows that “whales” in both spot and futures markets are aggressively opening positions in BONK. These large orders are appearing just as BONK’s price enters a discount zone and nears the peak of a multi-month accumulation pattern.

Meanwhile, retail investors – who “gave up” at similar price ranges from January to May due to surging trading activity – now appear to be lagging behind. After that phase, whales returned and pushed the price upward. Currently, this scenario seems to be repeating.

NguSource: CryptoQuant Notably, the data also shows whale buying power increasing as the Spot Taker CVD (in the past 90 days) has reversed into an upward trend at the time of writing. This shift began on November 8 – coinciding with the period when the effects of the BONK ETP may have started impacting the market.

NguSource: CryptoQuant ## Conclusion

Thanks to the momentum from the BONK ETP and large-scale whale buying, BONK is facing a potential breakout from a prolonged accumulation zone. However, this accumulation phase may continue for a short while, especially as the overall crypto market remains weak.

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