The market capitalization of Bonk (BONK), a meme coin on the Solana platform, has decreased by $2.13 billion over the past 30 days. This decline comes from the token price dropping by 40%.

For some investors, this drop presents an attractive buying opportunity that the market hasn't seen in a long time. However, according to on-chain data analysis, accumulating BONK at the current price level could be a risky decision.

Bonk loses growth momentum

Market capitalization is calculated by multiplying the circulating supply of a cryptocurrency by its price. On November 20, Bonk's market capitalization reached $4.35 billion. This meme coin surged to that value when its price participated in the overall market recovery, peaking at $0.000058.

At this moment, the market capitalization of Bonk has decreased to $2.22 billion, a drop of $2.13 billion from its peak in November. The main reason is that the price of BONK has fallen from $0.000058 to $0.000029.

This decline may also be related to the overall weakening of the 'altcoin season', which has affected the prices of many other meme coins. If the market situation does not improve, BONK may struggle to recover its lost gains.

Another indicator suggesting BONK may continue to decline is the Weighted Sentiment, which combines social media discussion volume and the sentiment of those discussions towards a cryptocurrency.

When this indicator has a negative value, it suggests that negative discussions dominate on social media platforms. Conversely, a positive value indicates an increase in positive discussions.

Data from Santiment shows that the meme coin Bonk has remained in negative territory since November 22. This negative sentiment trend indicates that the value of the coin may continue to decline under current conditions.

BONK price prediction: The downtrend is not over yet

The daily price chart shows that the price of BONK lost an important support level at $0.000041 on December 9. After confirming this level as resistance, it continued to lose the next support level at $0.000033 yesterday. This move indicates that the bears have taken control of the market and are selling aggressively on small recoveries.

The daily RSI indicator is sloping down and approaching the oversold area, supporting the possibility of further declines.

Therefore, the price of BONK may continue to decline to the next support level at $0.000025. Losing this level would bring the price down to the $0.000018 range, marking a 100% retracement of the recent price increase.