Whales are now net negative on the Binance exchange after liquidating their long BONK positions and taking profits.

  • BONK is down nearly 30% after hitting an all-time high.

  • Whales lead profit-taking and liquidate long positions; will the recovery be delayed?

Memecoin was the biggest weekly loser last week as large and mid-cap altcoins took center stage amid calls for a new altcoin season. Bonk [ BONK ] led the decline as profit-taking intensified after reaching a new high of $0.000062.

As of this writing, BONK is down 29% from its all-time high. While this could be a larger trend of capital rotation, here are the key levels that bulls can track.

Evaluating BONK's callback

Although the new ATH narrowly misses the extended golden Fibonacci ratio (around -61.8%), this level could be overturned as the next bullish target if a pullback is followed by gains.

Nonetheless, the uptrend has left critical price imbalances at two white areas (Fair Value Gap FVG). The immediate price imbalance level is above the 23.60% Fib, while the second price imbalance level is at the 50% Fib.

The latter also coincides with the 50-day SMA (simple moving average), suggesting that a pullback below $0.000039 could provide stronger support. Therefore, these could serve as key re-entry points for the bulls if the bullish momentum persists.

Given that the Stochastic RSI is high and oversold, BONK could still face additional pullbacks if the bears extend profit booking.

Demand plummets

In the first half of November, the price increase was driven by demand in the spot market (increase in cumulative spot volume - CVD) and subsequently by the futures market (surge in open interest).

However, demand has declined in both futures and spot markets, as evidenced by southbound movements in both OI and spot CVD.

This could further complicate a strong recovery unless the memecoin narrative regains dominance.

Another bearish indicator is whales reducing risk. Whales on the Binance exchange have been steadily clearing out their long positions since mid-November, as evidenced by the negative reading of the whale-retail Delta.

Historically, the removal of large players has led to depressed or sideways share prices. This could hit BONK in the short term.

For a possible price reversal, traders can track key levels as well as potential whale re-entry, which could signal a possible recovery for BONK.