- BONK witnessed a massive decline as social sentiment waned.
- Traders turned bearish and started taking short positions.
Bonk [BONK] has taken the meme coin world by storm as it grew in popularity in recent months. However, all the hype surrounding the token seemed to have dissipated in recent days.
A free fall
At the time of writing, BONK was trading at $0.00001301, down 5.75% in the past 24 hours. This decline, which started on December 15, has not stopped since.
After the price of BONK started to decline, the meme coin saw multiple lower lows and lower highs, showing a bearish trend.
BONK’s RSI also fell sharply during this period and stood at 40.83 at the time of writing. This suggested that there was no bullish momentum around BONK at the time of writing, making the chances of a reversal relatively slim.
Source: Santiment
No influence causes doubt
BONK’s price drop could be traced to declining social volume. Much of a meme coin’s price movement is determined by its popularity on social media.
This was also reflected in BONK’s weighted sentiment, which stood at -0.302 at the time of writing.
The negative comments surrounding BONK thus far outweighed the positive ones, which could further impact BONK’s future growth prospects.
Realistic or not, here is BONK’s market cap in BTC terms
Source: Santiment
Bears become wary
Similar to social sentiment, AMBCrypto’s analysis of Coinglass’ data showed a dramatic change in trading behavior. In recent weeks, the percentage of short positions on BONK has grown from 48% to an alarming 59%.
A large majority of traders appeared to be betting that BONK’s price would fall further.
Only time will tell if BONK’s popularity and meteoric rise were truly short-lived, or if a redemption arc is in store.
Source: Coinglass
The consequences for Solana
BONK’s declining interest may also cast a shadow of doubt on Solana. In recent months, activity on Solana has increased dramatically, with meme coins playing a big role in attracting activity to the network.
If the declining interest in BONK is indicative of a larger trend, there could be problems for the Solana network in the future.
However, at the time of writing, no such indication existed. The Daily Active Addresses on the Solana network stood at 696.09k and showed no evidence of major movements.
Source: Artemis