Bonk, a popular memecoin on the Solana network, experienced a notable price drop after peaking at $0.000041 on May 28. Currently, the coin is trading within a descending channel, signaling further potential declines. The current price movement suggests that the coin may break its support line, leading to a more substantial fall.
Why Is Bonk Coin Dropping?
A descending channel typically indicates bearish market sentiment. When an asset’s price trends downward within this channel, it forms a series of lower highs and lower lows. For Bonk, the upper line of this channel has become a resistance point at the $0.000044 level. Since its decline from $0.000041, the coin’s value has plummeted by 36%, with the current trading price standing at $0.000026.
Bonk is also trading below its 20-day Exponential Moving Average (EMA), which represents the average price over the past 20 days. Trading below this moving average confirms a bearish trend, indicating that recent prices are consistently lower than the 20-day average.
What’s Next for Bonk Coin?
The coin’s daily chart reveals that it has remained below the 20-day EMA since June 6. This persistent behavior below the critical EMA suggests ongoing selling pressure, which could either attract more sellers or cause current holders to pull back.
Investor Takeaways
- Bonk has been below its 20-day EMA since early June, indicating sustained bearish pressure.
- The coin’s value has dropped by 36% from its peak at the end of May, showing significant declines.
- Negative on-chain sentiment has been observed, affecting market confidence and potentially leading to further price drops.
The downward trend in Bonk’s price is further reinforced by negative sentiment metrics, which have consistently shown negative values since May 30. The current sentiment value is -0.86, indicating a high volume of negative discussions around the asset. If the sentiment remains negative and buying pressure does not increase, the coin may fall to $0.000021. Conversely, a shift in sentiment and a surge in buying could push the price up to $0.000027.