Meme Coin BONK Susceptible to Significant Decline Due to Bearish Indicators
Wednesday, 1 May 2024, 20:00
BONK Cryptocurrency Poised for 50% Decline Amid Bearish Signals
The meme coin BONK is currently in a descending wedge pattern, indicating a possible drawdown in the near future. The failure to breach a crucial resistance level has heightened the risk of a significant downturn.
Key Support Levels Under Threat
- The price of BONK is currently above an important support line of $0.00002153, but the prevailing bearish sentiment could push it below this level.
- Investors are increasingly taking short positions on BONK, reflecting a lack of confidence in the coin's upward potential.
Funding Rate and Market Sentiment
- The funding rate for BONK futures contracts has turned negative, indicating a dominance of put contracts and a bearish bias in the market.
- Technical indicators like the Relative Strength Index (RSI) are signaling oversold conditions for BONK, further supporting the bearish outlook.
In light of these factors, BONK is likely to experience a substantial decline before potentially finding support at key levels.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.