reporter
Posted on:
- Among all cryptocurrency assets, BONK has seen the biggest decline over the past seven days.
- This comes after its value increased by more than 500% last month.
After a prolonged rally, the dog-themed Solana-based token Bonk (BONK) has hit a snag, losing nearly 30% of its value in just seven days.
The drop comes after the token reached an all-time high of $0.00003419 on December 15 following a significant increase in demand last month. By then, the price of BONK had risen more than 500% in the previous month.
Since hitting record highs, the price of BONK has fallen. Trading at $0.00001816 at press time, its price has fallen 44% since December 15. CoinMarketCap.
Source: CoinMarketCap
End of an era?
AMBCrypto’s assessment of BONK’s price movements on the daily charts shows a noticeable decrease in trading volume among spot traders. Key momentum indicators have been trending downward since December 14th, suggesting a sharp decline in demand for meme coins.
For example, BONK’s Accumulation Distribution Line (ADL) value has since decreased by 38%. ADL measures the underlying supply and demand for an asset, and it does this by determining whether traders are actually buying or selling the asset.
A falling ADL usually means there are more investors selling an asset than buying it. This also confirms the downward price trend, suggesting further declines are possible.
Additionally, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators have plummeted over the past few days.
At press time, they were still above their respective neutral lines, but as overvaluation around BONK decreases, they may move into oversold territory.
Still in a downward trend at press time, BONK’s RSI and MFI were 67.97 and 60.61, respectively.
Chaikin Money Flow (CMF) was returning negative values at press time, suggesting a significant decrease in liquidity in the BONK spot market.
Typically, a CMF value below 0 is a sign of weak markets. A negative CMF indicates that the volume-weighted average of funds flowing into the market is skewed toward selling. As of this writing, BONK’s CMF was -0.07 at press time.
Realistic or not, the BONK market cap in BTC terms is as follows:
Finally, the bears were seen re-entering. This is based on the reading of the token’s Moving Average Convergence Divergence (MACD) indicator, which shows the MACD line below the trend line following a downward crossover on December 22nd.
This confirms the change in market sentiment. This type of intersection is usuallyShort-term momentum is showing a downward trend.
Source: BONK/USDT on TradingView