reporter
Posted on:
- Coinbase announced plans to list BONK.
- Bearish sentiment devastates the spot market as demand for BONK declines.
Following its inclusion in KuCoin in late November, leading cryptocurrency exchange Coinbase announced plans to list dog-themed token BONK on its platform.
The price of BONK soared to an all-time high of $0.000014 shortly after it was listed on KuCoin. Due to the “Coinbase Effect”, many token holders are expecting another rally period following BONK’s final exchange listing.
What should we expect in the meantime?
Although still up 22% last week, BONK is down 30% from its all-time high hit on December 9th.
At press time, the altcoin was trading at $0.000009829. CoinMarketCap showed it Despite the news that Coinbase has decided to list the altcoin, its value has plummeted 24% in the last 24 hours.
Source: CoinMarketCap
Demand for BONK has declined significantly over the past 12 hours while accumulation continues among spot market participants. A reading of the token’s momentum indicator observed on the 12-hour chart revealed this.
At press time, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) are trending downward and poised to breach their respective central lines. This shows that selling pressure is starting to outpace BONK accumulation.
Moreover, Chaikin Money Flow (CMF), which signals a decrease in liquidity inflow into the BONK market, was 0.02 and almost fell into negative territory at the time of reporting.
If an asset’s CMF value is 0.02 and is trending downward, it indicates that funds are flowing out of that asset. This is a sign that positive sentiment towards the asset is losing momentum and the price is likely to fall further.
The token’s Moving Average Convergence/Divergence (MACD) indicator returned a red histogram bar for the first time since the start of the month, confirming the rise in bearish sentiment.
Realistic or not, the market cap of BONK in BTC terms is:
AMBCrypto found that the MACD line crossed below the trendline on December 12th. Whenever this happens, it signals that upward momentum may be weakening and a downtrend may begin.
Many investors believe that now is a good time to consider selling or shorting an asset to reduce its price.
Source: BONK/USDT on TradingView