Earlier today, Binance announced the listing of the Solana-based meme coin Ponke (PONKE) on its futures market, driving its price up by 12% within minutes. However, the surge was short-lived as PONKE’s price quickly retraced all those gains.
Here’s a breakdown of how it all happened and what might be next for the meme coin’s value.
Ponke Sees Record Volume, Bearish Sentiment
Binance listed the meme coin Ponke at 12:30 UTC today, pairing it with USDT in a perpetual contract. Created in 2023, Ponke is a monkey-themed meme coin that initially gained traction among meme coin enthusiasts before being overshadowed by the rise of tokens like dogwifhat (WIF) and Bonk (BONK).
Despite losing momentum after being outperformed by its peers, Ponke’s listing on Binance reignited interest, causing its price to surge from $0.44 to $0.51. However, the gains were short-lived, as the excitement surrounding the listing quickly turned into a classic “sell the news” event, leading to a complete reversal of the earlier price increase.
Still, PONKE’s volume soared to an all-time high of $88.57 million. This surge implies that the listing leads to higher interest in the meme coin. But in this case, rising volume alongside declining price is bearish, suggesting that the metric is strengthening the downtrend.
Read More: What Are Meme Coins?
If sustained, PONKE’s price might continue to decrease. The weighted sentiment around the meme coin is another factor suggesting an accelerated drawdown.
This metric gauges the broader market’s perception of a cryptocurrency. When it is positive, the average comment is bullish. But a negative reading indicates otherwise.
According to Santiment, the Ponke Binance listing initially lifted the Weighted Sentiment very high. However, as of this writing, it has dropped to the negative region, suggesting that pessimistic remarks have plagued the cryptocurrency shortly afterward. This also indicates dwindling demand, which could drag PONKE’s price further down.
PONKE Price Prediction: Decline May Continue
A look at the 4-hour chart shows that the Moving Average Convergence Divergence (MACD) has fallen to the negative region. The MACD is a technical oscillator that measures the relationship between two moving averages to spot trends.
When the indicator’s reading is positive, momentum is bullish, and the price can increase. But in this case, the negative rating suggests bearish momentum around PONKE. Hence, the value might drop.
Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide
While PONKE trades at $0.432, this current condition indicates that the meme coin value could slide to $0.36. However, if market participants buy the dip, this forecast might be invalidated, and PONKE might rally to the highest point of the wick at $0.62.
Disclaimer
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