29 February, 2024

Bonk Plummets, Amplifying Meme Coin Market’s Bearish Trend

1 month ago

19 Jan, 2024

  • BONK joins Dogecoin and Shiba Inu in the struggle, casting a shadow of disappointment and dwindling recovery hopes across the meme coin market.
  • A substantial correction triggers a $562K single-day-long liquidation, signaling prolonged trader hesitation and casting a shadow on once-optimistic sentiment.
  • Experiencing an 8.09% decline, BONK precariously hovers at $0.00001185, on the brink of breaching the $0.00001137 support.

In a grim turn of events for meme coin enthusiasts, the Solana-based BONK has become the latest casualty in the ongoing struggles of cryptocurrencies like Dogecoin and Shiba Inu. The meme coin market is grappling with disappointment, and optimism for recovery is waning as BONK takes a hit in the face of bearish market conditions.

On Wednesday, BONK experienced a substantial correction, leaving a trail of losses for traders as open positions shrank. The extent of the downturn was evident in a staggering $562,000 in long liquidations in a single day. Investors, already cautious due to the sluggish recovery, now face the possibility of continued reluctance to bet on a market rebound.

Source: Coinalyze

Traders’ persistent anticipation of a price upswing has resulted in long liquidation events, which have emerged as a worrisome trend. The prolonged string of disappointments has raised concerns as it may induce caution among traders, causing them to withhold their wagers. This, in turn, casts a substantial shadow over the once vibrant and optimistic sentiment that prevailed in the market.

BONK is trading at $0.00001185, marking an 8.09% decline in the last 24 hours, and it hovers dangerously close to breaching another support level at $0.00001137. Over the past 7 days, the meme coin has witnessed a decline exceeding 21.74%, relinquishing its psychological support at $0.00001500.

Source: TradingView

The Relative Strength Index (RSI) languishes persistently below the neutral line, firmly entrenched at 50.0, firmly situating it within the confines of the bearish neutral zone. This foreboding indicator, casting a shadow over market dynamics, hints at the looming potential for a protracted decline extension. In the event that the $0.00001137 support succumbs to pressure, the stark possibility of a steep plunge to $0.00001000 looms ominously on the horizon.

Despite the gloomy scenario, a potential recovery could materialize if the altcoin rebounds from the aforementioned support level. Confirmation of this turnaround would occur when the RSI crosses the neutral line, establishing it as a new support floor. This optimistic outcome would propel Bonk’s price beyond $0.00001306, effectively refuting the prevailing bearish thesis. Investors eagerly await market developments to ascertain whether Bonk can defy the prevailing trend and stage a comeback.



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