Why BONK Price May Remain at the Mercy of Bears
The post Why BONK Price May Remain at the Mercy of Bears appeared on BitcoinEthereumNews.com.
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 Bonk Social Dominance. Source: Santiment 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 Chaikin Money Flow. Source: TradingView 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…
Filed under: News - @ October 11, 2024 12:20 am