- BONK suffered a massive decline as social sentiment weakened.
- Traders turned bearish and began taking short positions.
Bonk (BONK) has taken the meme coin world by storm as it has grown in popularity over the past few months. However, all the hype surrounding the token seems to have died down in recent days.
free fall
At press time, BONK was trading at $0.00001301, down 5.75% in the last 24 hours. This decline started on December 15th and has not stopped since.
After the BONK price began to fall, the meme coin showed a bearish trend with several lows and highs.
BONK’s RSI also declined significantly during this period, hitting 40.83 at press time. This suggests that there was no bullish momentum surrounding BONK at the time of this writing, and that the possibility of a reversal is relatively weak.
Source: Santiment
No influence arouses suspicion.
BONK’s price decline can be traced to a decline in social volume. A significant portion of meme coin price movements are driven by their popularity on social media.
This was also reflected in BONK’s Weighted Sentiment, which remained at -0.302 at the time of press.
Therefore, negative comments about BONK far outnumber positive comments, which may further impact BONK’s future growth prospects.
Realistic or not, the BONK market cap in BTC terms is as follows:
Source: Santiment
Bear be careful
Similar to social sentiment, AMBCrypto’s analysis of Coinglass data revealed a huge shift in trader behavior. Over the past few weeks, the percentage of short positions on BONK has increased from 48% to an astonishing 59%.
The majority of traders seem to be expecting the price of BONK to fall further.
Only time will tell whether BONK’s popularity and meteoric rise was truly short-lived, or if there is a path to redemption ahead.
Source: Coinglass
Impact on Solana
BONK’s decline in interest could also cast a shadow of doubt on Solana. Activity on Solana has skyrocketed over the past few months, and meme coins have played a large role in driving activity on the network.
If the decline in interest in BONK is indicative of a larger trend, it could lead to future problems for the Solana network.
However, there was no such indication at press time. The daily active addresses on the Solana network were 696.09k, showing no signs of significant movement.
Source: Artemis