Sharp Decline in BONK Trading Volume Sparks Concerns for PEPE, WIF, and FLOKI
The trading volume of the Solana-based meme coin Bonk [BONK] has experienced a significant 73% decrease in the past month, diverging from the general trend of memecoins. Despite a rally in the memecoin market during the same period, CoinMarketCap’s data reveals a 27% drop in BONK’s price.
Analysis of key technical indicators on a 1-day chart suggests a potential further decline in BONK’s value. The Directional Movement Index (DMI) signals bearish control, with the positive directional index (blue) consistently below the negative index (red) since 9th April.
With BONK’s Relative Strength Index (RSI) at 45.28 and its Money Flow Index (MFI) at 45.09, indicators show a dominance of distribution over accumulation, exerting downward pressure on the price. The Elder-Ray Index, reflecting selling strength since 2nd April, highlights increasing bear power in the market.
Additionally, the Moving Average Convergence Divergence (MACD) line below both the signal and zero lines signifies a bearish trend, suggesting an opportune moment for traders to switch to short positions from long ones.
Market Participants Show Resilience
Despite a 65% decline in BONK futures open interest since 5th March, data from Coinglass reveals a positive funding rate in cryptocurrency exchanges. This indicates that participants in the futures market have maintained long positions, anticipating a potential uptrend.