Bonk (BONK) is the second highest market cap token among Solana meme coins, with trading volume today reaching $1 billion. This milestone was achieved after BONK's price increased by about 70% over the past seven days.

Although many traders may hope that the increase in BONK trading volume is a bullish signal, on-chain analysis suggests that this may not be the case.

Bonk interest is rising, but bullish sentiment is declining.

Data shows that on November 9, Bonk's trading volume was approximately $125 million. Trading volume is a key indicator for cryptocurrencies, reflecting the popularity of the token and suggesting potential price trends.

High trading volume usually indicates increased interest. On the other hand, low trading volume suggests diminished interest. Therefore, BONK's trading volume rising to $1 billion means that people's interest in the meme coin is increasing.

From a price perspective, an increase in trading volume may be favorable, provided that the value of the cryptocurrency also rises. However, in the past 24 hours, BONK's price has experienced a period of consolidation, and today at noon, the price began to surge, currently around $0.0000318.

In addition to trading volume, weighted sentiment is another indicator suggesting that BONK may struggle to continue appreciating.

The weighted sentiment indicator adjusts values by considering the number of mentions, normalizing data to make sentiment across various assets more comparable. This means that when a specific token is mentioned frequently, the indicator will spike or dip.

For Solana meme coins, market sentiment has turned negative, indicating that most comments on this cryptocurrency are bearish. If this trend continues, demand may weaken, potentially leading to price consolidation or decline.

Analyzing BONK's derivatives data.

The derivatives market's attitude towards BONK is mixed. As of the time of writing, the trading volume of this meme coin has soared again by 15.5%, reaching $1.06 billion, indicating that futures traders are increasingly optimistic about BONK's future performance.

However, the decline in open interest indicates that BONK's open positions are decreasing. This suggests that futures traders are taking a cautious approach due to significant price volatility.

The long/short ratio is 1.53, indicating that short positions outnumber long positions. The predominance of short positions may be due to a surge in long liquidations, while the amount of short liquidations in the past 24 hours was $231,500.

The derivatives market is a good indicator of market bullish or bearish sentiment. Therefore, the mixed data suggests uncertainty regarding the token's ongoing upward trend.

However, positive sentiment surrounding Solana-based meme coins may support the upward trend. Data from CoinGecko shows that the total market cap of these meme coins has risen over 20% in the past 24 hours, exceeding $15.87 billion.

Is BONK about to experience a short-term decline?

On the daily chart, Bonk's price continues to show signs of rising. The increase in the Money Flow Index (MFI) reading also supports this.

MFI is an indicator that measures buying and selling pressure by analyzing price and volume data. Its range is from 0 to 100, where an MFI above 80 indicates overbought conditions, suggesting potential selling opportunities, while an MFI below 20 indicates oversold conditions, suggesting potential buying opportunities.

With readings exceeding 80, BONK is likely to become overbought soon. If this is the case, the value of the meme coin may drop to $0.000026. However, if Bonk's trading volume continues to rise and BONK finds solid support around $0.00003, the price may surge to $0.000040.

In short, Bonk's trading volume has risen to $1 billion, indicating strong market interest, and its price has currently rebounded to break through the $0.00003 level. However, technical indicators are oversold, suggesting that a price correction may be on the way. Finally, it is worth mentioning that the current surge in Bitcoin's price is not particularly healthy and could lead to a bubble. It is still recommended to gradually reduce positions and secure profits, as having USDT on hand will alleviate panic!