Bonk (BONK), the Solana-Based Meme Coin, Faces the Risk of Further Price Decline

Bonk (BONK), the Solana-based meme coin, faces the risk of further price decline after dropping from $0.000025 to its current value of $0.000019.

Solana-based meme coin BONK (BONK) risks further price decline after dropping from $0.000025 to its current value of $0.000019.

While some traders may view this dip as a buying opportunity, analysis suggests exercising caution. Here's why.

Market Interest in Bonk Dwindles

One factor suggesting that the meme coin may struggle to recoup some of the lost gains is its declining social dominance. Social dominance measures the discussion rate related to a cryptocurrency.

When it increases during a price decrease, it signifies that the market may be considering buying the cryptocurrency. In such cases, the price has a higher chance of rising. Conversely, a decrease in social dominance indicates that the broader market is paying less attention to the asset and may be considering other cryptos to buy.

In BONK’s case, the social dominance has dropped, suggesting that mentions of the meme coin have decreased across several social media platforms. This decline indicates that demand for BONK may be waning, and a price increase might not be likely in the short term.

Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide

Furthermore, the Chaikin Money Flow (CMF) on BONK's daily chart has fallen below the zero signal line, currently at -0.10. The CMF measures accumulation versus distribution, with an increase signaling higher buying pressure and potential price growth, while a decrease suggests the opposite.

For BONK, the CMF's current reading indicates that market participants are distributing the coin, possibly taking profits from recent price gains. If this trend continues, BONK's price could experience further declines.

BONK Price Prediction: Still Bearish

Currently, BONK is on the verge of falling below $0.000019. The decreasing trading volume around the token indicates a lack of strong buying pressure, making it difficult for the meme coin to gain momentum.

If this trend continues, BONK’s price could drop to $0.000017, a historically weak support level. In April, when BONK hit $0.000017, the downtrend intensified, driving the price down to $0.000014. A similar scenario could unfold, with BONK potentially dropping by another 20% to $0.000014.

Currently, BONK's price is on the brink of falling below $0.000019. The chart below shows that the trading volume around the token has been decreasing, suggesting that it could be challenging for the meme coin to experience solid buying pressure.

If this remains the same, the meme coin’s price might drop to $0.000017. But that level has historically proven to be a weak zone for BONK. For instance, in April, when Bonk hit $0.000017, the downtrend intensified as the price hit $0.000014.

Read more: 11 Top Solana Meme Coins to Watch in October 2024

However, if meme coin prices rise again, this bearish prediction could be invalidated. In that case, BONK's price might climb to $0.000024 and potentially reach $0.000032 before the year ends.

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