- BONK witnessed a huge price increase last week.
- Despite this, sentiment around the meme coin remained negative.
Bonk [BONK] has been one of the most popular meme coins in the crypto sector for quite some time. However, as 2024 began, the price of BONK began to drop significantly, creating FUD among investors.
A temporary peak
Over the past week, BONK’s price grew by 8.31%, causing a stir among meme coin enthusiasts.
The volume on which BONK traded also grew by 5.88% over the same period, reaching a total of 96.04 million.
Although the price increase was quite large, there was still a lot of room for growth for the meme coin. Despite the recent price rise, BONK failed to surpass the $0.0000178 resistance level.
The price showed multiple lower lows and lower highs, indicating that the price trend for BONK was still bearish.
The RSI for BONK was 51.70. The neutral RSI level implied that there was room for price movement in both directions.
In the context of BONK’s ongoing 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 current bearish sentiment.
The CMF, on the other hand, stood at -0.15. A negative CMF value indicated prevailing selling pressure in the market.
This reading reinforces the idea that there is a net outflow of funds, which could potentially contribute to bearish sentiment in the market.
Source: trading view
Skepticism is increasing
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 movements are driven by social media activity.
AMBCrypto’s analysis of Santiment’s data showed that social volume for BONK continued to rise in recent weeks.
Although BONK grew in popularity on social media platforms, weighted sentiment around BONK continued to decline.
How much are 1,10,100 BONKs worth today?
This meant that there were more negative comments on social media than positive ones, which could hurt BONK’s share price in the future.
Source: Santiment
At the time of going to press, traders had a pessimistic view of BONK. Notably, Coinglass’ data showed that the percentage of traders shorting BONK had grown from 50% to 53.98%.
Source: Coinglass