The meme coin based on dogs, particularly the Solana-based token Bonk (BONK), has experienced significant market activity and an extended period of growth due to the unstoppable rise of the Solana network. However, it suffered a roughly 30% loss in value over a seven-day period.
This decline followed an explosive movement in SOL last month, which drove up demand and pushed BONK’s value to its all-time high of $0.00003419 on December 15. Before the drop, BONK had seen an over 500% increase compared to the previous month.
Since reaching its peak, BONK’s value has continued to decline, trading at $0.00001845 at the time of writing, marking a 44% decrease since December 15.
Technical analysis on BONK’s daily chart movements indicates a decrease in interest among spot traders, with the Accumulation Distribution Line (ADL) value dropping by 38% since the peak. A falling ADL generally suggests that the asset is under selling pressure.
Additionally, the Relative Strength Index (RSI) and Money Flow Index (MFI) indicators, closely watched by investors, have shown a downward momentum for BONK in recent days. At the time of writing, the RSI was still close to neutral, but the MFI had visibly dropped, signaling a potential decline into oversold territory following the waning excitement around BONK. The RSI and MFI values were 45.47 and 19.97, respectively.
The Chaikin Money Flow (CMF), which indicates a significant liquidity drop in BONK’s spot market, was also in the negative zone at -0.08. Typically, a CMF value below zero is interpreted as a sign of weakness in the market, suggesting that the volume-weighted money flow is predominantly on the sell side.