The star of the 2023 bull run and the Solana ecosystem bonksurprises investors with its strong price performance. After losing more than 65% of its value last month, BONK has shown signs of a revival of the rally. This context has left market participants both curious and cautious about the reasons behind this unexpected growth.
altcoinA plausible explanation for the price recovery is strategic action taken by whale investors. These investors are embarking on an active buying spree to potentially dollar-cost average (DCA) their positions.
Dollar-cost averaging is a strategy in which an investor divides the total amount to invest by periodic purchases of a target asset to reduce the impact of volatility on the total purchase. The Whales’ actions show that they believe in BONK’s potential for a strong comeback. This could enable them to mitigate significant losses from the recent price drop.
Koinfinans.com As we reported, after a dramatic peak and subsequent decline, the token price began to stabilize and move upwards. This price action could be indicative of significant buying pressure at lower price levels as whales accumulate additional tokens in anticipation of a market reversal.
During the bearish phase, the averaging down strategy can be high risk but also high return. If timed right, it allows investors to reduce their average cost per token and gain more when a recovery occurs.
meme coin For , the whales’ confidence could also spark renewed interest from retail investors, who often see the actions of larger investors as signals. However, it is important to note that such recoveries can be fragile, especially in a bear-dominated market phase. Such a volatile asset may continue to move downwards for the foreseeable future. Therefore, you may need to be more careful when taking steps.