Solana based meme coin BONK It has been in an upward trend for a long time. However, it lost approximately 30% of its value in just 7 days and hit a resistance.
The drop comes after a significant increase in demand last month pushed the token to an all-time high of $0.00003419 on December 15. By then, the price of BONK had increased by over 500% compared to the previous month.
BONK price has started to decline since reaching its highest level. According to CoinMarketCap data, the price of BONK, which was traded at $0.00001816 at the time of writing, has fallen by 44% since December 15.
Key momentum indicators have been in a downward trend since December 14. this too meme coinIt shows a sharp decline in demand for .
For example, BONK’s Accumulation Distribution Line (ADL) has since fallen by 38%. ADL measures the underlying supply and demand of an asset and does so by determining whether investors are actually buying or selling the asset.
A falling ADL generally indicates that more investors are selling the asset rather than buying it. It also confirms a downtrend in price and indicates that further declines may be likely.
At the time of writing, BONK’s RSI and MFI values, which continued to decline, were 67.97 and 60.61, respectively.
Koinfinans.com As we reported, Chaikin Money Flow (CMF), which indicates a significant decrease in liquidity in BONK’s spot market, took a negative value at the time of writing.
Typically, a CMF value below zero is a sign of market weakness. A negative CMF indicates that the volume-weighted average of money flowing into the market is in the selling direction. At the time this news was written, BONK’s CMF value was -0.07.
Finally, the bears were seen making a re-entry. This was based on readings from the token’s Moving Average Convergence Divergence (MACD) indicator, which showed the MACD line stalling below the trend line following a bearish crossover on December 22.
This indicates a change in market sentiment. Because this type of transition typically indicates that short-term momentum is declining.
