Did Someone Forget The BONK? Trading Volume Plunges Over 70%

Christian Encila

1 year ago

3 mins read

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Bucking the trend within the highly volatile memecoin sector, Bonk (BONK), a Solana-native meme token, has exhibited a bearish bias despite prevailing bullish sentiment across the broader memecoin market.

Recent data from CoinMarketCap reveals a staggering 25% price decline for Bonk over the past month, a stark contrast to the general upward trajectory witnessed across the meme coin landscape during the same period.

At the time of writing, BONK was trading at $0.00002166, down 1.93% and 1.40% in the daily and weekly timeframes, data from CMC shows.

Traders Grapple With Uncertainty In Bonk’s Derivatives Market

In the derivatives market, where traders speculate on the future price movements of assets, Bonk’s futures open interest has witnessed a dramatic decline, plummeting by a staggering 60% since early March, as reported by data from Coinglass.

This sharp downturn in open interest reflects a significant reduction in the number of contracts or positions held by traders, indicative of diminishing interest and confidence in Bonk’s prospects among derivative traders.

Despite the pronounced downturn in futures open interest, the funding rate across various cryptocurrency exchanges has managed to maintain a positive stance.

This funding rate, which reflects the cost of holding long positions relative to short positions, suggests that some traders are still maintaining optimism and are unwilling to entirely abandon the possibility of an impending uptrend in Bonk’s price.

BONKUSD trading at $0.000021on the daily chart: TradingView.com

However, the conflicting signals between technical indicators and market sentiment leave traders grappling with uncertainty, unsure whether to hold onto their positions or cut their losses.

The 30-day period under review has seen a significant fall in Bonk’s daily trading volume, with Santiment’s data indicating a 75% decrease.

This decline in trading activity adds further weight to the bearish sentiment surrounding the coin, signaling waning investor interest and confidence in its potential.

Source: Santiment

Technical Indicators Signal Trouble For Bonk

Further exacerbating Bonk’s woes are its momentum indicators, which reveal a troubling discrepancy between distribution and accumulation.

The Money Flow Index (MFI) points to increased selling activity, outweighing any attempts at buying and adding further downward pressure on the coin’s value.

As the market grapples with these conflicting signals, the spotlight remains firmly fixed on Bonk and its ability to weather the storm.

With its MACD line sinking below the signal and zero lines, signaling a weakening short-term trend compared to its longer-term outlook, traders are faced with a critical decision point.

A Glimmer Of Hope Amidst The Storm

As traders continue to monitor the situation closely, there is potential for a shift in sentiment that could breathe new life into Bonk’s ailing price.

For now, the road ahead for Bonk remains uncertain, with technical indicators pointing towards further declines while traders cling to hopes of a reversal.

Featured image from Pixabay, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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