The market capitalization of Bonk (BONK), a meme coin on the Solana platform, has decreased by $2.13 billion over the past 30 days. This decline is due to the token price dropping by 40%.
For some investors, this drop presents an attractive buying opportunity that the market hasn't seen in a long time. However, according to on-chain data analysis, accumulating BONK at the current price level could be a risky decision.
Bonk loses growth momentum
Market capitalization is calculated by multiplying the circulating supply of a cryptocurrency by its price. On November 20, Bonk's market capitalization reached $4.35 billion. This meme coin surged to that value as its price participated in the overall market recovery, peaking at $0.000058.
At the current time, Bonk's market capitalization has fallen to $2.22 billion, a decrease of $2.13 billion from the peak in November. The main reason is the price of BONK dropping from $0.000058 to $0.000029.
This decline may also be related to the general weakening of the 'altcoin season,' which has affected the prices of many other meme coins. If the market situation does not improve, BONK may struggle to recover the lost gains.
Source: Santiment
Another indicator suggesting the possibility of BONK continuing to decline is the Weighted Sentiment, which combines the volume of discussion on social media and the sentiment of those discussions towards a cryptocurrency.
When this indicator has a negative value, it indicates that negative discussions dominate on social media platforms. Conversely, a positive indicator signifies an increase in positive discussions.
Source: Santiment
Data from Santiment shows that the meme coin Bonk has remained in negative territory since November 22. This negative sentiment trend suggests that the value of the coin may continue to decline under the current conditions.
BONK price prediction: The downtrend is not yet over
The daily price chart shows that the price of BONK lost an important support area at $0.000041 on December 9. After confirming this area as resistance, it continued to lose the next support area at $0.000033 yesterday. This move indicates that the bears have taken control of the market and are selling heavily on small recoveries.
Daily BONK/USDT chart | Source: TradingView
The daily RSI indicator is sloping down and approaching the oversold region, supporting the possibility of further declines.
Therefore, the price of BONK may continue to drop to the next support area at $0.000025. Losing this area would cause the price to fall to the $0.000018 region, marking a 100% retracement of the recent price increase.
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