Memecoin BONK down 30% in 7 days – What now?
- Of all crypto assets, BONK has seen the most decline in the last seven days.
- This comes after its value grew by over 500% in the last month.
After an extended period of rally, dog-themed Solana-based token Bonk [BONK], has hit a snag, losing nearly 30% of its value in just seven days.
The decline comes after the significant uptick in demand in the last month pushed the token to an all-time high of $0.00003419 on 15th December. By then, BONK’s price had climbed by over 500% in the preceding month.
Since clinching the high, BONK’s price has declined. Exchanging hands at $0.00001816 at press time, its price has fallen by 44% since 15th December, according to data from CoinMarketCap.
The end of an era?
AMBCrypto’s assessment of BONK’s price movements on the daily chart revealed a notable decline in trading volume among spot traders. Key momentum indicators have trended downward since 14th December, suggesting a steep fall in demand for the meme coin.
For example, the value of BONK’s Accumulation Distribution Line (ADL) has since dropped by 38%. The ADL measures the underlying supply and demand of an asset, and it does this by determining whether traders are actually buying or selling the asset.
A falling ADL generally indicates that more investors are selling the asset than buying it. It also confirms a downtrend in price, suggesting further declines may be likely.
Also, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators have plummeted in the past few days.
Although they remained positioned above their respective neutral lines at press time, the waning hype around BONK might cause them to cross into the oversold territory.
Still declining at press time, BONK’s RSI and MFI were 67.97 and 60.61, respectively.
Suggesting a significant liquidity decline in BONK’s spot market, its Chaikin Money Flow (CMF) returned a negative value at press time.
Typically, a CMF value below zero is a sign of weakness in the market. A negative CMF indicates that the volume-weighted average of the money flow into the market is tilted towards selling. As of this writing, BONK’s CMF was -0.07 at press time.
Realistic or not, here’s BONK market cap in BTC‘s terms
Lastly, the bears were spotted making a re-entry. This was based on readings from the token’s Moving Average Convergence Divergence (MACD) indicator, which showed the MACD line resting under the trend line, following a downward crossover on 22nd December.
This confirms the shift in market sentiment, as this type of crossover typically suggests that the short-term momentum is turning bearish.