BONK’s price turned south after investors stopped supporting the asset
Increasing selling pressure on BONK could increase funder skepticism and send memcoin to the new minimum.
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Investor pessimism prevails
BONK’s price has suffered in the last 18 days due to a lack of recovery momentum after a 40% drop in two weeks. This confirms it indicator Chaikina (Chaikin Money Flow, CMF). This one onchain metric measures the movement of cash flows into and out of an asset. Traders use it to gauge the direction and strength of a trend.
In the case of BONK, the indicator shows a significant increase in capital outflow, which significantly increases the pressure on the asset. This trend reached a record high, indicating strong bearish sentiment and a lack of investor confidence, which could trigger a sell-off tokens.
Financing rate turned negative this week, which is another bearish signal for the market. This mechanism provides a balance between long and short positions in the market of perpetual futures contracts. Positive values indicate the dominance of long contracts and mean that the contract price exceeds the spot price. This means that more traders are buying the coin with the expectation of selling it at a higher price.
Meanwhile, for BONK holders, a negative funding rate means that the consensus forecast of market participants is for a fall in value. The metric’s descent into the negative zone reflects general market pessimism and a sense of price instability at current levels.
BONK Forecast: Expected to fall
The coin is now already trading below the critical support of $0.00002153. If the decline continues, the altcoin will only have one chance to bounce back from $0.00001941.
If BONK slips below this level as well, it could suffer significant losses and potentially fall to $0.00001375.
If the rebound is successful, the price may try to recover the recent losses and turn the $0.00002122 level into support. This will set the stage for BONK’s recovery rally.
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Agreed I’m doing the Trust project, this analytical article is purely informative and cannot be considered as financial or investment advice. BeInCrypto’s policy is to provide quality and truthful information, however market conditions remain unpredictable. BeInCrypto encourages readers to independently verify the information and consult with a professional before making any financial decisions based on this content.