BONK bloodbath sparks $4 mln cold storage move – What’s going on?

• BONK dropped 10% as profit-taking triggered a sharp market pullback.
• A drop in volume, spot demand, and positive overall activity hint at a quick price recovery.

Bonk [BONK] dropped by a massive 10% over the last 24 hours, dropping to $0.00002208 at press time.

While this drop was part of the overall crypto market shakeout during this period, profit-taking traders deepened it, as most bearish metrics appear temporary.

Position size shrinks as traders sell BONK

The position size of BONK in the market has seen a massive decline over the past 24 hours. At the time of writing, the Open Interest, which measures this, dropped by approximately 20% to $27.8 million.

This means several running positions were liquidated during the period, as sentiment moved against their direction.

Liquidation data shows that $95,370 in positions were closed in the market, with long traders bearing the most loss.

Long traders account for more than 50% of the loss recorded, with $74,230 lost to the market during this period.

While the market appears heavily skewed in favor of short traders, there’s still some bullish hope.

What does waning selling pressure imply?

An analysis of market volume shows that the fall could end as traders grow exhausted. 24-hour Trading Volume dropped 41.91% to $77.18 million, falling alongside price.

A significant volume drop along with a price drop means the selling pressure is gradually fading. It also implies that there’s insufficient momentum to continue backing the decline.

At the same time, Spot Traders in the market have continued to buy BONK despite the drop.

Currently, this group of traders has scooped up $4 million worth of BONK from the market, moving the tokens into private wallets.

A move from exchanges to cold storage implies that this group is more long-term focused on BONK’s potential.

If this move continues, it will likely cause a supply squeeze, causing exchange reserves to keep dropping, driving demand upward, and resulting in a major market rally for BONK.

That’s not all.

AMBCrypto found that despite the decline in Open Interest, the overall derivative market remains bullish.

Despite the drop in Open Interest, the Open Interest Weighted Funding Rate remains positive at 0.0029%. This suggests that longs still dominate, even as leverage resets.

While the metric is trending downward, its positive value keeps BONK within a bullish market structure—for now.