Bonk (BONK), the Solana-based meme coin, faces the risk of further price decline after dropping from $0.000025 to its current value of $0.000019.
Although some traders might view this dip as a buying opportunity, analysis suggests caution. Here are the reasons.
Market Interest in Bonk Dwindles
Bonk’s social dominance is one factor suggesting that the meme coin could struggle to recoup some of the lost gains. Social dominance measures the rate of discussion related to a cryptocurrency.
When it increases during a price decrease, it means that the market could be looking at buying the cryptocurrency. In that instance, the price has a good chance of increasing. On the flip side, a decrease in social dominance means that the broader market is overlooking the assets and possibly eyeing other cryptos to buy.
In BONK’s case, social dominance dropped, suggesting that mentions of the meme coin have decreased on several social media platforms. This decline indicates that demand for BONK could be waning, and a price increase might not occur in the short term.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
Additionally, the Chaikin Money Flow (CMF) on BONK’s daily chart has dropped below the zero signal line, now at -0.10. The CMF measures accumulation versus distribution, with an increase signaling higher buying pressure and potential price growth, while a decrease suggests the opposite.
For BONK, the CMF’s current reading indicates that market participants are distributing the coin, possibly taking profits from recent price gains. If this trend continues, BONK’s price could experience further declines.
BONK Price Prediction: Still Bearish
Currently, BONK is on the verge of falling below $0.000019. The decreasing trading volume around the token indicates a lack of strong buying pressure, making it difficult for the meme coin to gain momentum.
If this trend continues, BONK’s price could drop to $0.000017, a historically weak support level. In April, when BONK hit $0.000017, the downtrend intensified, driving the price down to $0.000014. A similar scenario could unfold, with BONK potentially dropping by another 20% to $0.000014.
Currently, BONK’s price is on the brink of falling below $0.000019. The chart below shows that the trading volume around the token has been decreasing, suggesting that it could be challenging for the meme coin to experience solid buying pressure.
If this remains the same, the meme coin’s price might drop to $0.000017. But that level has historically proven to be a weak zone for BONK. For instance, in April, when Bonk hit $0.000017, the downtrend intensified as the price hit $0.000014.
Read more: 11 Top Solana Meme Coins to Watch in October 2024
However, if meme coin prices rise again, this bearish prediction could be invalidated. In that case, BONK’s price might climb to $0.000024 and potentially reach $0.000032 before the end of the year.
Disclaimer
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