BONK Price Battles Bearish Sentiment Amidst Price Decline Concerns
07/14/2024 20:05
BONK's price is attempting to break out of its consolidation phase, but this may prove difficult due to prevailing investor bearishness.
BONK’s price is struggling to find footing above $0.00002500, which would help the meme coin breach through the next barrier.
On top of that, the altcoin’s investors are exhibiting increasing bearishness, some even leaning towards a price decline.
BONK Struggles Against Resistance
BONK price is noting the impact of the rising bearishness towards the altcoin. BONK’s Chaikin Money Flow (CMF) indicator recently broke through its downtrend, signaling a potential shift in market sentiment. However, this upward momentum appears to be waning, raising concerns about the sustainability of this trend.
As the CMF indicator dips below the zero line, it suggests that buying pressure is beginning to build. This shift indicates that more capital is flowing out of BONK, which could lead to a decline in its price if the trend continues.
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Adding to these concerns, BONK’s funding rate has turned negative again just days after briefly being positive. A negative funding rate typically indicates that short positions are paying long positions. This suggests a domination of short contracts reflecting bearish sentiment among investors.
This negative funding rate implies that investors are expecting BONK’s price to drop. The combination of weakening CMF momentum and a negative funding rate suggests that BONK may face increased selling pressure in the near future.
BONK Price Prediction: A Little to the Down
BONK, trading at $0.00002411, is currently failing to breach the resistance at $0.00002748. Along with the aforementioned factors, this failure suggests a breakout to $0.00003000 is unlikely for now. Thus, the meme coin could end up being consolidated at $0.00002748 and $0.00002153.
If the bearish cues intensify, the meme coin could potentially fall through the support of $0.00002153. This would result in a drawdown to $0.00001941, leading to a drop below $0.00002000.
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However, if the $0.00002748 barrier is breached, BONK would have a shot at recovery. This would also invalidate the bearish thesis.
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Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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