Memecoins have been on a wild ride over the past month, with Bonk (BONK) leading the charge. After a 19.21% surge, BONK saw moderate gains last week, climbing by 5.05%. However, the recent market correction hit hard, as BONK plunged by 17.70% in the last 24 hours, trading at $0.00002082 at press time.
Alongside the price dip, BONK experienced a sharp drop in trading volume, declining by 27.89% to $460.6 million, and its market cap took a 17.55% hit, now sitting at $1.48 billion. This sudden reversal in fortunes has left traders and investors questioning whether BONK’s bull run is over or if the recent dip is simply a pause before the next uptrend.
Market Sentiment Shift – A Warning Sign?
The recent price retracement comes after BONK attempted to break past the $0.00002750 resistance level but failed to maintain momentum. This rejection signaled that buyers were not strong enough to push the price higher, with sellers stepping in to defend the key resistance level. The market has since shifted from bullish optimism to growing caution.
According to data from Market Prophit, crowd sentiment has taken a nosedive, with a Z score sentiment of -1.49, indicating negative market sentiment. The BUZZ score, which tracks social media mentions and market buzz, has also seen a sharp decline in the past 24 hours, further supporting the bearish outlook.
BONK’s Technical Indicators Point to Further Decline
Analysis of BONK’s technical chart suggests that the memecoin could face further declines before any meaningful recovery. BONK’s Relative Strength Index (RSI) has dropped from a high of 74 to 51 over the past five days, indicating weakening buying pressure. Typically, when the RSI trends lower, it signals a shift in momentum toward sellers.
Additionally, BONK has seen a spike in liquidations, with $2.2 million wiped out in the past four days, underscoring the rising selling pressure. This has led to concerns that investors may be losing confidence in the token’s prospects, as seen in the decline of Open Interest by 10.96%, now sitting at $10.62 million. The drop in futures interest, which fell from $13.59 million to $10.91 million, suggests that traders are closing positions without new entrants stepping in to take their place.
Will BONK Hold Its Ground or Slip Further?
The big question now is whether BONK can hold its current support level or if it’s headed for further declines. If the current trend persists and BONK falls below $0.00002000, it could find its next support around $0.00001862 and $0.00001706.
As market sentiment continues to waver and technical indicators point toward further bearish pressure, BONK’s future hinges on whether buyers can regain control or if sellers will continue to dominate the market. For now, traders should proceed with caution, as the memecoin’s short-term outlook remains uncertain.
With BONK facing increased volatility, investors will need to closely monitor market movements to determine whether this is a temporary setback or a sign of deeper declines ahead. As always, memecoins remain highly speculative, and BONK’s rollercoaster ride is far from over.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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