- Bonk fell by 17.7% in 24 hours.
- The memecoin’s fundamentals suggested a further decline below $0.0000200 before another uptrend.
Over the past month, memecoins have experienced an exponential rise. During this period, Bonk [BONK] saw a continued increase, rising 19.21%.
The memecoin has made modest gains over the past week, up 5.05%.
However, the past 24 hours have seen a significant market correction. In fact, at the time of writing, BONK was trading at $0.00002082.
This marked a drop of 17.70% on the daily charts. The memecoin also saw a drop in trading activity, down 27.89% to $460.6 million, while its market capitalization fell 17.55% to $1.48 billion.
The prevailing market sentiment
According to AMBCrypto’s analysis, BONK tried to break above $0.00002750 but faced a rejection, causing the price to retreat.
This price movement indicated that buyers were not strong enough to push prices above this level as sellers defended this level.
Such market conditions showed a shift in market sentiment from positive to negative.
Source: Markt Profhit
As such, AMBCrypto’s look at Market Prophit suggested that current public sentiment was negative at the time of writing.
This was supported by the fact that the Crowd Z-score sentiment was -1.49, while the Market Prophit Z-score sentiment was -0.0988. Also, audience sentiment and BUZZ scores have fallen sharply over the past 24 hours.
The question is: could this pullback cause BONK to fall below $0.00002000, or is the pullback just a correction before a strong rebound?
What BONK graphs indicate
AMBcrypto’s analysis showed that market conditions at press time could set BONK up for further declines before attempting a new uptrend.
Source: TradingView
For example, BONK’s Relative Strength Index (RSI) has fallen over the past five days from a high of 74 to 51 at the time of writing.
This showed a decline in buying activity as sellers began to dominate the market. Usually, higher selling pressure results in price drops.
Source: Coinglass
Additionally, BONK has seen liquidations rise to $2.2 million over the past four days. This demonstrated a strong shift in market sentiment. Investors therefore seemed to have no confidence in the prospects of memecoin.
Source: Coinglass
Finally, the memecoin’s Open Interest fell 10.96% to $10.62 million over the past day.
This decline suggested that investors were closing their positions while no new investors entered the market. This indicated the lack of confidence among investors in the current direction.
Source: Coinglass
This phenomenon is further supported by a sustained decline in futures open interest over the past five days. BONK’s Futures Open Interest fell from $13.59 million to $10.91 million.
Read Bonk’s [BONK] Price forecast 2024–2025
Therefore, BONK saw a significant change in market sentiment, with sellers beginning to dominate at the time of writing.
If the current trend continues and BONK closes below $0.0000200 on a daily candle, the memecoin will find its next support around $0.00001862 and $0.00001706.