Memecoins
Bonk Coin Drops 36% Since May on Solana Network
- The Solana-based BONK memecoin has come under intense bearish pressure after peaking at $0.000041 on May 28.
- Since the coin is trading inside a descending channel, the Bonk coin will experience a 36% decline if it falls below the key support.
The Bonk Coin (BONK) has been one of the best performing coins and has put tokens on the map during the recent memecoin craze that has seen such coins lead the bull market and reach all-time highs. Leading up to its all-time high of $0.000041 reached on May 28, the little-known cryptocurrency has been one of the best-performing altcoins. Solana’s SOL and its ecosystem-driven projects have largely dictated investor sentiments and driven the bull market.
At the time, BONK was outperforming more popular, established, reputable, and diversified rivals such as Shiba Inu (SHIB) and Dogecoin (DOGE).
However, his performances were modest. His case is not an isolated one, memecoins lose their appeal as investor appetite declines. In part, this is due to renewed interest in Bitcoin, illustrated by inflows into spot Bitcoin ETFs. Additionally, the possibility of launching a spot Ether ETF soon has drawn investor attention to large-cap cryptocurrencies, including Ethereum. But it is important to note that Solana is one of the leading candidates to have its ETF confirmed by the SEC, but Ethereum, its rival, is leading the race.
At the time of writing, BONK is trading for $0.00002501 after rising 2.6% in the last 24 hours. The altcoin has achieved a rebound that sees it rise above the key support. On the weekly chart, BONK lost 12%, painting a medium-term bearish outlook.
With a market capitalization of $1.6 billion, Bonk is ranked 65th and is in a bearish trend, currently trading below the 20-day exponential moving average (EMA). This indicates that recent prices are lower than the average price of the last 20 days.
Continued weakness below the critical EMA suggests persistent selling pressure. This selling could attract new sellers looking to take advantage of the downtrend or cause existing holders to lose confidence and sell their positions.
While its volatility offers investors quick profits, it equally exposes investors to great risks. Furthermore, its status as a memecoin means it has no intrinsic value, suggesting it will struggle to attract long-term investors. These types of investors offer price stability and long-term prospects. With speculators and retail traders in the driving seat, this indicates a difficult price movement.
BONK was one of four memecoins highlighted in a Crypto News Flash relationship which warned investors of losses with an incoming collapse. But not all is bad: Coinbase recently introduced perpetual futures contracts for the popular meme coins Shiba Inu, Floki, and Bonk, which will increase trading activity for these meme coins.