The meme coin themed on dogs, Solana-based token Bonk (BONK), which has been the most talked about lately, experienced a long period of increase due to both market volatility and the unstoppable rise of the Solana network. It then suffered a value loss that caused it to lose about 30% of its value in just a seven-day period.
Current Status of BONK Price
The price drop came after the token reached its highest level on December 15th at $0.00003419, following a significant increase in demand after SOL‘s explosive movement last month. Before the price drop, BONK’s price had increased by over 500% compared to the previous month.
After reaching its peak, BONK’s price continued to decline. As seen in the charts, as of the time of writing, it is trading at $0.00001845, but BONK’s price has dropped by 44% since December 15th.
BONK Technical Analysis
In the evaluation of BONK’s daily chart price movements seen below, there was an interpretation that interest in trading volume among spot traders had decreased.
For example, BONK’s Accumulation Distribution Line (ADL) value has dropped by 38% since the date of the peak. ADL measures the underlying supply and demand of an asset and presents this by examining whether traders are actually buying and selling the asset.
A falling ADL value generally indicates that the asset is moving under selling pressure. In addition, the Relative Strength Index (RSI) and Money Flow Index (MFI) indicators, which investors closely monitor, had a downward momentum for BONK in the last few days.
As of the time of writing, although the RSI was still close to neutral, the same could not be said for MFI, which visibly dropped, suggesting that a decline could follow the decrease in excitement around BONK and could trigger a move to the oversold region. According to press time, BONK’s RSI and MFI values were 45.47 and 19.97, respectively.
The Chaikin Money Flow (CMF) also indicated a significant liquidity drop in BONK’s spot market, with a value of -0.08 at the time of writing, being in the negative zone.
Typically, a CMF value below zero can be interpreted as an indicator of weakness in the market. A negative CMF reveals that the flow of money entering the market is volume-weighted towards selling.
