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BONK Prepares for a Drop as Meme Coin Craze Subsides  

2 mins
Updated by Ryan James
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In Brief

  • BONK price is hovering above a key support level, losing which could send the meme coin to two-month lows.
  • BONK investors’ skepticism is gaining ground as their bearish sentiment has significantly intensified.
  • The effect of this sentiment is visible in the shift in funding rate as investors pull back their positive bets.
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BONK price will likely witness a bearish outcome as the meme coin craze is seemingly ending. 

The enthusiasm among meme coin holders is declining rapidly, which is visible in their actions.

BONK Investors Pull Back 

BONK’s price enjoyed its holders’ optimism, but as the macro conditions turn unfavorable for the crypto market, this optimism seems to be fading away. This is clearly evident in the weighted sentiment of all BONK investors.

This metric combines and analyses all the mentions and expressions pertaining to a topic. The data helps to provide a more nuanced view of public opinion or investor sentiment. Upticks suggest bullishness, while downticks hint at bearishness.

In the case of BONK, the investors’ sentiment, which turned bearish at the beginning of the month, is intensifying. 

BONK Weighted Sentiment.
BONK Weighted Sentiment. Source: Santiment

The impact of this intensifying skepticism is visible in the meme coin’s funding rate. The funding rate is a periodic payment exchanged between traders in a futures contract to keep the contract price aligned with the spot price. 

It reflects the difference between perpetual futures prices and spot prices, where a positive rate indicates a bullish market, and a negative rate indicates a bearish market. Generally, positive rates suggest the dominance of long contracts over short ones and vice versa.

BONK, while maintaining a positive funding rate, is noting a decline. This shows that traders are liquidating and pulling out long contracts. 

Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide

BONK Funding Rate.
BONK Funding Rate. Source: Coinglass

As the price drops further, it won’t be surprising to see the funding rate become negative.

BONK Price Prediction: Keeping Above a Key Support

BONK price is holding above the critical support of $0.00002748, a level that has been tested as support and resistance. The chances of a decline below this line are significant, and the meme coin could thus fall to $0.00002153.

The aforementioned conditions do hint at a further decline, although $0.00002000 will act as a support floor. This will potentially prevent BONK from falling any lower.

Read More: Bonk Airdrop Eligibility: Who Can Claim and How?

BONK Price Analysis.
BONK Price Analysis. Source: TradingView

But if the broader market conditions improve, BONK could capitalize on it and bounce back. Should the breakdown fail or the meme coin recover mid-way, a recovery to $0.00003000 is on the cards. Breaching the same would invalidate the bearish thesis.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
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