Bonk (BONK), the Solana-based meme coin, deals with the threat of additional rate decrease after dropping from $0.000025 to its present worth of $0.000019.
Some traders may see this dip as a purchasing chance, analysis recommends care. Here are the factors.
Market Interest in Bonk Dwindles
Bonk’s social supremacy is one element recommending that the meme coin might have a hard time to recover a few of the lost gains. Social supremacy determines the rate of conversation associated to a cryptocurrency.
When it increases throughout a rate reduction, it suggests that the marketplace might be taking a look at purchasing the cryptocurrency. Because circumstances, the rate has a likelihood of increasing. On the other hand, a decline in social supremacy indicates that the more comprehensive market is neglecting the properties and potentially considering other cryptos to purchase.
In BONK’s case, social supremacy dropped, recommending that discusses of the meme coin have actually reduced on a number of social networks platforms. This decrease shows that need for BONK might be subsiding, and a cost boost may not take place in the short-term.
Find out more: How to Buy Solana Meme Coins: A Step-By-Step Guide
Bonk Social Dominance. Source: Santiment
In addition, the Chaikin Money Flow (CMF) on BONK’s everyday chart has actually dropped listed below the no signal line, now at -0.10. The CMF determines build-up versus circulation, with a boost signaling greater purchasing pressure and prospective rate development, while a decline recommends the opposite.
For BONK, the CMF’s existing reading shows that market individuals are dispersing the coin, perhaps taking benefit from current rate gains. If this pattern continues, BONK’s rate might experience more decreases.
Bonk Chaikin Money Flow. Source: TradingView BONK Price Prediction: Still Bearish
Presently, BONK is on the brink of falling listed below $0.000019. The reducing trading volume around the token shows an absence of strong purchasing pressure, making it tough for the meme coin to acquire momentum.
If this pattern continues, BONK’s rate might drop to $0.000017, a traditionally weak assistance level. In April, when BONK struck $0.000017, the drop heightened, driving the cost to $0.000014. A comparable situation might unfold, with BONK possibly stopping by another 20% to $0.000014.
Presently, BONK’s rate is on the edge of falling listed below $0.000019. The chart listed below programs that the trading volume around the token has actually been reducing, recommending that it might be challenging for the meme coin to experience strong purchasing pressure.
If this stays the exact same, the meme coin’s cost may drop to $0.000017. That level has actually traditionally shown to be a weak zone for BONK. In April, when Bonk struck $0.000017, the sag magnified as the cost struck $0.000014.
Learn more: 11 Top Solana Meme Coins to Watch in October 2024
Bonk Daily Price Analysis. Source: TradingView
If meme coin costs increase once again, this bearish forecast might be revoked. Because case, BONK’s rate may reach $0.000024 and possibly reach $0.000032 before completion of the year.
