- The price of BONK has fallen by almost 30% in the past month.
- The price charts show that there is a possible further decline.
Solana-based meme coin Bonk [BONK] is going against the trend and registered a 27% price drop in the past month, despite the rally in the memecoin market during that period, CoinMarketCaps data have shown.
Over the 30-day period examined, the token’s daily trading volume dropped significantly. According to Santiments According to data, BONK’s daily trading volume has fallen 73% over the past month.
Source: Santiment
BONK to extend losses
A review of BONK’s key technical indicators on a 1-day chart indicated the possibility of a further decline in the memecoin’s value.
Measurements of the Directional Movement Index (DMI) show that bears are in control of the market. The positive directional index (blue) shows that it is below the negative index (red). These lines have been positioned this way since April 9.
When an asset’s DMI is set up this way, it suggests that its downward price movement is stronger than any potential for an upward correction.
Furthermore, the altcoin’s key momentum indicators were seen below their respective neutral lines at the time of writing. BONK’s Relative Strength Index (RSI) was 45.28 and its Money Flow Index (MFI) was 45.09.
These values showed that BONK’s distribution exceeded its accumulation, putting downward pressure on the price.
Moreover, the Elder-Ray Index has only shown negative values since April 2. This indicator measures the relationship between the strength of buyers and sellers in the market.
When its value is negative, it means there is an increase in selling activity as bear power increases.
What confirms the strength of the bears was that BONK’s MACD line was below the signal and zero lines at the time of writing.
When an asset’s MACD line falls below its signal line and returns a negative value, it is a bearish signal. This suggests that the short-term trend is weaker than the longer-term trend. Traders take this as a sign to exit long positions and enter short positions.
Source: BONK/USDT on TradingView
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Traders refuse to budge
In BONK’s derivatives market, open interest on futures has fallen 65% since March 5. Mint glass facts. However, despite this decline, the funding rate on cryptocurrency exchanges has remained positive.
This indicates that futures market participants have continued to take long positions in anticipation of an uptrend.