BONK at Risk of a Sharp Fall? Assessing Key Fundamentals
Bonk is down 17.7% in the last 24 hours.
The fundamentals of this memecoin suggest a further drop below 0.0000200 before a potential bounce back.
Over the past month, the memecoin sector has seen a huge boom. During this period, Bonk [BONK] has been on a steady rise, increasing by 19.21%.
This memecoin has seen a slight increase over the past week, climbing 5.05%.
However, the last 24 hours have shown a significant market correction. Currently, BONK is trading at 0.00002082.
This marked a 17.70% drop on the daily indexes. At the same time, memecoin trading activity also declined, falling 27.89% to $460.6 million while its market cap fell 17.55% to $1.48 billion.
Current market sentiment
According to TinTucBitcoin analysis, BONK attempted to move above the 0.00002750 level but was rejected, causing the price to pull back.
This price movement shows that buyers were not strong enough to push the price above this level, as sellers maintained resistance.
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This market condition indicates a shift in market sentiment from positive to negative.
Source: Market Prophit
So, looking from TinTucBitcoin's Market Prophit, the current crowd sentiment is negative at the time of writing.
This is reinforced by the fact that the crowd sentiment Z-score is -1.49, while the Market Prophit sentiment Z-score is -0.0988. Not only that, the BUZZ index and crowd sentiment have both dropped significantly over the past 24 hours.
The question is: will this pullback send BONK below 0.00002000 or is this just a temporary correction before a sharp increase?
Indicator on BONK chart
TinTucBitcoin’s analysis suggests that market conditions at the time of writing could see BONK decline further before attempting a rebound.
Source: TradingView
For example, BONK's RSI has declined over the past 5 days from a high of 74 to 51 at the time of writing.
This indicates a decrease in buying activity as sellers begin to dominate the market. Often higher selling pressure leads to a drop in price.
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Source: Coinglass
Furthermore, BONK has seen a surge in liquidations of $2.2 million in the past four days. This shows a clear shift in market sentiment. So, investors seem to be lacking confidence in the memecoin’s prospects.
Source: Coinglass
Finally, memecoin open interest fell 10.96% to $10.62 million over the past day.
This decline shows that investors are closing their positions while no new investors are entering the market. This shows that their confidence in the current direction is waning.
Source: Coinglass
This phenomenon is further reinforced by the steady decline in Futures open interest over the past 5 days. BONK Futures open interest has fallen from $13.59 million to $10.91 million.
As a result, BONK is witnessing a clear shift in market sentiment, with sellers starting to dominate as of writing.
If the current trend sustains and BONK closes below 0.0000200 on a daily candle, memecoin will find next support around 0.00001862 and 0.00001706.
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