Bonk Faces Price Uncertainty After 9% Plunge in 24 Hours🤔
The cryptocurrency market was jolted as Bonk, a meme currency, experienced a sharp 9% decline within a mere 24-hour period, plummeting to $0.00001162. This drop occurred alongside a broader market downturn of 1%.
This sudden downturn interrupts a period of relative stability for Bonk, which had been experiencing modest gains. However, over the past week, the meme currency has suffered a notable 13% loss. Despite this recent setback, Bonk has managed to achieve a remarkable 17% increase over the last two weeks and a commendable 7.5% rise over the course of the past month.
The dip in price is attributed to profit-taking by traders who sought to capitalize on Bonk's recent gains. However, there remains optimism fueled by the fact that some large holders, known as whales, continue to retain their Bonk holdings. This retention suggests the potential for a swift recovery in the weeks ahead.
Nevertheless, indicators such as the relative strength index (RSI) indicate a loss of momentum for Bonk, with the RSI dropping below the critical threshold of 50. Furthermore, the 30-day average of Bonk's performance struggles to regain momentum, signaling a potential corrective phase.
As Bonk navigates through this period of uncertainty, it faces the crucial test of its support level. A drop below this level could trigger further price decreases, exacerbating concerns over Bonk's already low liquidity.
Speaking of liquidity, Bonk's 24-hour trading volume remains alarmingly low, currently estimated at $85 million, a significant decrease from its December figure of $1.6 billion. This low liquidity renders Bonk vulnerable to rapid price fluctuations, further adding to the uncertainty surrounding its future trajectory.
While some may attribute the recent decline to profit-taking by large holders, not all Bonk whales have sold their holdings. One holder notably retains a substantial sum of 314.8 billion Bonk.
$BONK
