During the recent month, memecoins have witnessed an extraordinary surge in value. In that same period, Bonk [BONK] demonstrated a continuous upward trend, increasing by 19.21%.
Throughout the last week, this memecoin saw modest gains, rising by 5.05%.
However, the past 24 hours brought about a notable market correction, leading BONK to be valued at $0.00002082 at the current moment.
This drop marked a 17.70% decline in the daily charts. Furthermore, there was a decrease in trading volume by 27.89% to $460.6 million, alongside a 17.55% dip in market capitalization to $1.48 billion.
Current Market Sentiments
Based on CryptoCrypto’s assessment, BONK tried to surge above $0.00002750 but faced resistance, subsequently prompting a price retracement.
This price action indicated that buyers lacked the strength to push prices beyond that level, encountering opposition from sellers.
Such market conditions denote a shift from optimistic to pessimistic sentiment.
Thus, according to CryptoCrypto’s examination of Market Prophit, the prevailing crowd sentiment appears negative at the moment.
This is highlighted by the crowd Z score sentiment standing at -1.49, with the Market Prophit Z score sentiment at -0.0988. Moreover, both the crowd sentiment and BUZZ scores have seen a sharp decline within the past 24 hours.
The looming question is whether this pullback will drive BONK below $0.00002000 or if this retracement is merely a correction preceding a robust upswing.
Analysis of BONK’s Charts
The analysis by Cryptocrypto suggests that the present market conditions might pave the way for further declines in BONK before another uptrend is attempted.
For instance, BONK’s Relative Strength Index (RSI) dropped over the past five days from a peak of 74 to 51 currently.
This decline signifies reduced buying pressure as sellers assume a dominant position in the market, typically resulting in price decreases.
Additionally, BONK witnessed a significant rise in liquidations, reaching $2.2 million in the last four days, indicating a notable shift in market sentiment. Thus, investors seem to lack confidence in the future of this memecoin.
Moreover, BONK’s Open Interest decreased by 10.96% to $10.62 million within the past day.
This decrease implies that existing investors are closing their positions without new participants entering the market, reflecting a lack of confidence in the current trajectory.
Another supporting observation is the sustained drop in Futures open interest over the past five days, with BONK’s Futures Open Interest falling from $13.59 million to $10.91 million.
Conclusively, BONK is experiencing a notable shift in market sentiment, with sellers establishing dominance currently.
If the ongoing trend persists, and BONK closes below $0.0000200 on a daily candlestick, the memecoin may find its subsequent support levels around $0.00001862 and $0.00001706.