Bonk (BONK) has joined the group of coins that have sharply declined over the past month. According to data from CoinMarketCap, this asset leads the market with a decrease of 34%.
Analysis shows that the downtrend could deepen in the upcoming trading sessions after BONK breaks through a critical support level. Liquidity indicators also warn of the risk of continued losses in the coming days.
Key support has been broken – What will happen to BONK?
After several weeks of strong growth, BONK is now facing the risk of wiping out most of its profits as it breaks critical support levels.
A price slide below $0.00002393 is expected to trigger a deeper decline, targeting the nearest support area at $0.00001835.
If the next support level does not hold, BONK is likely to continue its downtrend, leading to increased losses for investors in the coming weeks.
Although a recovery phase may still occur, analysis indicates that a deeper decline in the coming days cannot be ruled out.
Indicators warn of the risk of heavier losses
Technical indicators suggest that the downtrend could be more severe, as both the Money Flow Index (MFI) and the Relative Strength Index (RSI) are signaling weakness.
At the time of writing, the MFI records a level of 50.97, reflecting the continuous outflow of liquidity. If this index falls below the neutral threshold of 50, the downtrend could accelerate, increasing BONK's losses.
The Relative Strength Index (RSI) is also weakening, falling below the neutral zone and recording a level of 39.61. A low RSI indicates that upward momentum is fading and confirms that selling pressure currently outweighs buying pressure, adding more pressure to the price.
Off-chain data shows that investor activity remains polarized, with a simultaneous existence of bears and bulls.
Market liquidity continues to weaken
Liquidity in the market continues to decline. At the time of writing, the outflow of funds is trending upward. The funding rate indicator according to OI shows that although the number of Long positions is still greater than Short positions, this index is trending down as Short positions increase.
If this index falls into negative territory, the decline of BONK could become more severe in the coming weeks. However, net inflow data from CoinGlass shows some buying activity. Over the past three days, inflows have increased, with $2.55 million worth of BONK purchased in the last 24 hours.
Continuous accumulation by spot investors will contribute to strengthening the recovery trend or at least reducing the risk of a sharp decline due to significant sell-off pressure.