BONK: Is it the right time to go long?

• BONK witnessed a massive surge in price over the last week.
• Despite this, sentiment around the meme coin remained negative.

Bonk [BONK] was one of the most popular meme coins in the crypto sector for quite some time. However, as 2024 began, the price of BONK started to fall materially, causing FUD among investors.

A momentary spike

Over the last week, the price of BONK grew by 8.31% causing a stir among meme coin enthusiasts.

The volume at which BONK was trading had also grown by 5.88% during the same period, adding up to a total of 96.04M.

Even though the surge in price was quite large, there was still a lot of room for growth for the meme coin. Despite the recent uptick in price, BONK failed to surpass the $0.0000178 resistance level.

The price showed multiple lower lows and lower highs, suggesting that the price trend for BONK was still bearish.

The RSI for BONK was at 51.70. The neutral RSI level implied that there was room for price movement in either direction.

In the context of BONK’s persistent bearish trend with multiple lower lows and lower highs, the neutral RSI reading adds a layer of uncertainty, as it neither strongly supports nor contradicts the current bearish sentiment.

The CMF, on the other hand, was at -0.15. A negative CMF value indicated a prevailing selling pressure in the market.

This reading reinforces the notion that there is a net outflow of funds, potentially contributing to the bearish sentiment in the market.

Source: Trading View

Skepticism on the rise

Another crucial factor that would play a role in BONK’s future would be the social volume surrounding the token. A large majority of any memecoin’s price movement is driven by activity on social media.

AMBCrypto’s analysis of Santiment’s data showed that social volume for BONK had continued to soar over the last few weeks.

Even though BONK was growing in terms of popularity on social media platforms, the Weighted Sentiment around BONK continued to decline.

 How much are 1,10,100 BONKs worth today?

This meant that negative comments on social media had outnumbered positive ones, which could hurt BONK’s price in the future.

Source: Santiment

Traders held a pessimistic view of BONK at press time. Notably, Coinglass’ data indicated that the percentage of traders shorting BONK had grown from 50% to 53.98%.

Source: Coinglass