2024-04-16 08:04:42
- The price of BONK has fallen by double digits over the last week.
- Key indicators suggest the possibility of a further decline.
Solana-based memecoin bonk [BONK] has extended its losses to rank as the second asset with the greatest fall in the last week, according to CoinMarketCap data.
In the last seven days, the price of memecoin has fallen more than 40%, making it the top meme asset with the biggest drop during that period.
BONK foresees more losses
At the time of writing, BONK was trading at $0.000014. An evaluation of the altcoin’s price movements on a daily chart confirmed the possibility of a new decline.
Firstly, its Chaikin Money Flow (CMF) trended downward and was detected below the zero line. This indicator measures the flow of money into and out of the BONK market.
When it returns a negative value, it is interpreted as a sign of market weakness, as market participants remove liquidity from the market. BONK’s CMF was -0.05.
Furthermore, the downward slope of its Accumulation/Distribution Line (ADL) showed that BONK had witnessed a significant decline in demand in recent weeks.
This indicator also measures the flow of money into or out of an asset over a specific period of time. When it falls this way, it shows that less money is flowing into the asset and that selling pressure is gaining momentum.
Confirming BONK’s declining buying pressure, its key momentum indicators were detected near oversold zones at press time. For example, the meme coin’s Relative Strength Index (RSI) was 33.25, while its Money Flow Index (MFI) was 34.13.
At these values, these indicators showed that market participants favored BONK distribution over accumulation.
Furthermore, the token’s positive directional index (green) remained below its negative index (red), indicating significant bearish sentiment.
When an asset’s Directional Movement Index (DMI) readings reveal this, it is a sign that asset holders are selling more than they are buying.
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BONK’s Elder-Ray Index confirmed the bearish market sentiment. This indicator measures the relationship between the strength of buyers and sellers in the market.
When it returns a negative value, selling activity increases as bearish power becomes more significant.
Next: Is Bitcoin’s bearish trend ending? 4 factors tell you why…
This is an automatic translation of our English version.
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