The market cap of Solana meme coin BONK (BONK) has dropped by $1.8 billion over the past 30 days. The drop comes amid a 34.11% price decline.
Some see this drop as a good buying opportunity that the market hasn’t seen in a while. However, these on-chain analyses suggest that accumulating BONK at the current price could be a risky decision.
Punk loses big gains in the market
Market cap is calculated as the product of a cryptocurrency’s circulating supply and its price. On November 20, Punk’s market cap was $4.35 billion. The meme coin surged to this value as its price joined the broader market rally to reach $0.000058.
As of this writing, the market cap has fallen to $2.55 billion, indicating that it has lost $1.80 billion from its peak in November. This drop was due to the price of BONK falling from $0.000058 to $0.000034.
The decline can also be attributed to the broader altcoin season’s nullification, which has also affected the price of many meme coins. If the market situation fails to improve, BONK may also struggle to regain the gains it lost.
Another metric that points to further declines for BONK is weighted sentiment, which combines social trading volume and the tone of online discussions about the cryptocurrency.
When the metric is negative, it indicates a dominance of bearish conversations across social media platforms. Conversely, a positive metric indicates a higher volume of bullish comments.
Data from Santiment shows that the Solana meme coin has been in negative territory since November 22. This persistent bearish sentiment suggests that the meme coin’s value could continue to decline under the current circumstances.
BONK Price Prediction: The Downturn Is Not Over Yet
According to the daily chart, the price of Punk has fallen below the $0.000035 support. Previously, this support area was vital for the coin’s rebound to its all-time high in November.
But in this case, the decline indicates that the Punk correction is not over yet. As it stands, the bears seem to be in control even as the volume continues to decline. If this situation persists, and the bulls continue to remain on the sidelines, the meme coin could drop to $0.000025.
On the other hand, if the bulls manage to defend the value from falling below $0.000030, the trend could change. In this scenario, PONK could jump to $0.000042. In a very bullish scenario, PONK’s market cap could regain $4 billion, and the price could rally towards $0.000065.