BONK: Short positions grow as bears make their presence known

• BONK saw a decline in prices as interest from holders declined.
• Traders turned bearish as short positions grew.

Despite the recent dip in attention around Bonk [BONK], the meme coin has managed to outperform several important tokens in terms of market cap.

Problems for BONK

But even though BONK dominated the meme coin space, the price of BONK fell by 10.30% in the last 24 hours, according to CoinMarketCap.

Additionally, its trading volume had fallen by 45.24% during the same period, reaching 121.65 million at press time.

This massive price decline was observed after the token’s slight bullish run earlier this year. However, since the 11th of January, BONK struggled to see an uptick in price.

Overall, the price of BONK declined by 24.85% during this period. The price exhibited multiple lower highs and lower lows, establishing a bearish trend.

Looking at the price

The meme coin’s RSI, in the last few days, went from 68.30 to 52.95.

The RSI is a momentum indicator that measures the speed and change of price movements, providing insights into whether an asset is overbought or oversold.

A drop in the RSI suggests a weakening of upward momentum and a potential increase in selling pressure.

Additionally, BONK’s Chaikin Money Flow (CMF) registered a decline from 0.22 to 0.03.

A decrease in the CMF suggests a reduction in the strength of money flowing into the asset, indicating a potential shift in market sentiment.

When it came to BONK, there seemed to be reinforced indications of weakened buying pressure at the time of writing.

Source: Trading View

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Coming to the state of the traders, it was seen that short positions taken against BONK had increased to 52.6% at press time.

This surge in short interest suggested growing bearish sentiment, anticipating a potential decline in BONK’s price.

Source: Coinglass