BONK Faces Major Price Challenges
Explore why BONK's price fell 54%, the impact of declining open interest, and bearish market signals
Highlights:
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BONK's price dropped 54% recently, from $0.000035 to $0.000015 due to selling pressure.
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Open interest decreased by 55%, signaling reduced liquidity and negative funding rates.
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ADX shows strong bearish momentum; BONK could fall further or potentially reverse upward.

BONK (Bonk) has been under significant pressure recently. Its price has dropped by 54% in the past few weeks, falling from $0.000035 to $0.000015.
This decline is largely due to intense selling pressure, which has been evident from a series of red candles on the daily chart.
Declining Open Interest and Funding Rates
Open interest in BONK has dropped from $13 million to $5.7 million, marking a 55% loss. This decrease suggests a potential drop in market liquidity and investor commitment.

Additionally, the OI-weighted funding rate is negative at -0.0028, indicating that traders are paying to hold short positionsÂą. This negative rate reflects a bearish sentiment, as traders expect further price declines.
The Average Directional Index (ADX) has surged to 19%, signaling strong bearish momentum. If BONK's price breaks below its support trendline, it could fall another 28% to test the $0.000012 support level.
However, if the price manages to stay above the lower trendline, there could be a potential reversal. This could uplift the asset by over 30%, targeting $0.0000266.
Market Sentiment and Future Outlook
The broader crypto market has seen some recovery, with Bitcoin sustaining above $50,000 and the total market cap rising by 8.7%. Despite this, major altcoins, including BONK, are still struggling.
The bearish market sentiment and recession fears persist among traders. The Solana-based meme coin has been riding a steady recovery trend since February 2024, but the recent data suggests that sellers are currently dominating the market.
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