BONK fell 10% as investors took profits, causing a strong correction in the market.
The decline in volume, spot demand, and overall positive activity suggests a quick price recovery is possible.
Bonk [BONK] dropped sharply by 10% in the past 24 hours, down to $0.00002208 at the time of publication.
Although this decline is part of a shakeout in the cryptocurrency market, profit-taking by investors deepens the drop, as many bearish indicators appear to be temporary.
Position size shrinks as investors sell BONK.
The position size of BONK has decreased significantly over the past 24 hours. At the time of writing, Open Interest, this measuring index, has dropped about 20% to $27.8 million.
Source: CoinGlass
This means that some trading positions have been liquidated as sentiment shifts in the opposite direction.
Liquidation data shows $95,370 in positions have been closed, with long investors suffering the most.
Long investors account for over 50% of the losses, losing $74,230 during this period.
Although the market seems heavily tilted towards short investors, there is still a glimmer of bullish hope.
What does the decrease in selling pressure mean?
Market volume analysis indicates that the decline may end as investors gradually tire out. 24-hour trading volume decreased by 41.91% to $77.18 million, falling along with the price.
The significant decline in volume alongside the price indicates that selling pressure is gradually easing and there is not enough momentum to continue the downward trend.
Meanwhile, spot investors continue to buy BONK despite the price drop.
Source: CoinGlass
Currently, this group of investors has purchased $4 million in BONK from the market, transferring it to their private wallets.
Moving from the exchange to cold storage implies that this group has a longer-term view on the potential of BONK.
If the trend continues, the likelihood of a price surge is high as supply decreases, leading to increased demand and driving strong market growth for BONK.
That's not all.
TinTucBitcoin notes that although Open Interest is declining, the overall derivatives market remains optimistic.
Source: CoinGlass
Although Open Interest is declining, the Borrowing Rate on Open Interest remains positive at 0.0029%. This indicates that long investors still dominate, even as leverage is reset.
Although this index is on the decline, its positive value keeps BONK within an optimistic market structure – at least for now.
Source: https://tintucbitcoin.com/bonk-hon-loan-day-4-trieu-usd-vao-luu-tru-lanh/
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