During the recent period, memecoins have been on a rapid upward trajectory. Notably, Bonk [BONK] witnessed a consistent increase, rising by 19.21%.
Over the last week, the memecoin demonstrated moderate growth, surging by 5.05%.
However, in the past day, a notable market correction took place. At the latest update, BONK was trading at $0.00002082.
This revealed a significant 17.70% decline in the daily performance. Furthermore, both trading volume and market capitalization decreased by 27.89% to $460.6 million and 17.55% to $1.48 billion, respectively.
Assessment of Current Market Sentiment
An analysis by CryptoCrypto indicated that BONK tried to break above $0.00002750 but encountered resistance, leading to a price retracement.
This movement signaled a lack of strength from buyers to surpass this level, hinting at the defensive stance taken by sellers.
These developments reflected a shift in market sentiment from positive to negative.
According to Market Prophit’s analysis through CryptoCrypto, the prevailing crowd sentiment was pessimistic. The crowd Z score sentiment stood at -1.49, aligning with the Market Prophit Z score sentiment at -0.0988. Moreover, both crowd sentiment and BUZZ scores witnessed a notable drop within the past 24 hours.
The key question now is whether this pullback could drive BONK below $0.00002000 or if the retracement is merely a correction preceding a robust upturn.
Insights from BONK’s Chart Patterns
Analyzed by CryptoCrypto, the current market conditions at the time of writing are poised to lead BONK towards further declines before a potential rebound.
For instance, BONK’s Relative Strength Index (RSI) demonstrated a decline in the last five days, dropping from 74 to 51 currently.
This decline signifies reduced buying pressure as sellers gain control in the market, typically resulting in price downturns.
Additionally, BONK experienced a surge in liquidations, amounting to $2.2 million in the past four days. This surge indicates a notable shift in market sentiment, with investors showing apprehension towards the future of the memecoin.
Moreover, BONK’s Open Interest decreased by 10.96% to $10.62 million in the preceding day. This decrease implies existing investors closing their positions with a lack of new participants entering the market, reflecting wavering confidence in the current market trajectory.
Further confirming this shift is the sustained decrease in Futures open interest over the last five days. BONK’s Futures Open Interest declined from $13.59 million to $10.91 million.
Consequently, a significant shift in market sentiment is underway for BONK, with sellers gaining dominance at the current moment. Should the ongoing trend persist, and BONK closes below $0.0000200 on a daily candlestick, the memecoin’s next support levels lie around $0.00001862 and $0.00001706.