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- Of all crypto assets, BONK has seen the most decline over the past seven days.
- This comes after its value increased by more than 500% in the past month.
After a long period of rallying, dog-themed Solana-based token Bonk [BONK]has had a problem and has lost almost 30% of its value in just seven days.
The drop comes after a significant increase in demand over the past month pushed the token to an all-time high of $0.00003419 on December 15. By then, BONK’s price had risen more than 500% over the previous month.
Since reaching the high, the price of BONK has fallen. Exchanging hands at $0.00001816 at the time of writing, the price has fallen 44% since December 15, according to data from CoinMarketCap.
Source: CoinMarketCap
The end of an era?
AMBCrypto’s review of BONK’s price movements on the daily chart revealed a notable decline in trading volume among spot traders. Major momentum indicators have been trending downward since December 14, indicating a sharp decline in demand for the meme coin.
For example, the value of BONK’s Accumulation Distribution Line (ADL) has now fallen by 38%. The ADL measures the underlying supply and demand of an asset, and does this by determining whether traders are actually buying or selling the asset.
A declining ADL generally indicates that more investors are selling the asset than buying it. It also confirms a downward trend in the price, indicating that further declines are likely.
BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators have also plummeted in recent days.
While they remain above their respective neutral lines at the time of writing, the waning hype surrounding BONK could see them enter oversold territory.
BONK’s RSI and MFI were still declining at the time of writing, standing at 67.97 and 60.61 respectively.
Indicating a significant drop in liquidity in BONK’s spot market, the Chaikin Money Flow (CMF) returned a negative value at the time of writing.
Normally, a CMF value below zero is a sign of weakness in the market. A negative CMF indicates that the volume-weighted average of the flow of funds into the market is trending toward selling. At the time of writing, BONK’s CMF was -0.07.
Realistic or not, here is BONK’s market cap in BTC terms
Finally, the bears were spotted re-entering. This was based on readings from the token’s Moving Average Convergence Divergence (MACD) indicator, which showed the MACD line resting below the trendline, following a downward crossover on December 22.
This confirms the shift in market sentiment, as this type of crossover typically suggests that tThe short-term momentum turns bearish.
Source: BONK/USDT on TradingView