- BONK witnessed a massive price drop as social volumes dropped.
- Traders continued their bearish stance as short positions grew.
Bonk [BONK]the most popular meme coin in recent months, has fueled the growth of the Solana [SOL] ecosystem and attracted users to its network.
Lately, however, luck has not been on the side of BONK or its holders.
A huge drop
Since December 16, BONK’s share price has fallen by 6.73%. The price of BONK only showed lower lows and lower highs during this period, creating a bearish trend for the price.
The CMF, which stood at -0.15 at the time of writing, also did not show a positive future for BONK. For the uninitiated, when the CMF is negative, it indicates there is more selling pressure in the market.
Specifically, a negative CMF indicates that the closing price is below the midpoint of the high-low range, and volume is weighted toward the lower end of the daily range.
This could imply that there is higher volume associated with downward price movements.
It also suggests that sellers are more dominant in the market, potentially leading to a downtrend or a continuation of the current downward price movement.
On the plus side, however, there was an upward trend in terms of the RSI, which stood at 47.1 at the time of writing.
A low RSI suggested BONK was slightly underbought at the time of writing, and bullish momentum could be on the horizon. If the RSI continues to rise, there could be good news for the upcoming meme coin.
Source: trading view
Loss of popularity
A major reason why BONK witnessed a price drop was its lack of social media presence. Declining social volume indicated that chatter around the meme coin had subsided.
BONK’s weighted sentiment also fell significantly over this period, indicating that negative comments about BONK outweighed positive comments at the time of writing.
How much are 1,10,100 BONKs worth today?
However, AMBCrypto noted an increase in BONK’s volatility. If this volatility continues, there may be a chance of an extreme price reversal in the future.
Source: Santiment
Traders remained bearish on BONK at the time of writing, while short positions continued to rise.
Source: Coinglass