BONK Faces Major Downside Risks
The BONK token, the most popular memecoin on the Solana blockchain, has experienced an impressive surge in recent days. However, warning signals are accumulating, suggesting a brutal trend reversal could be imminent in the coming days.
Bonk has climbed to $0.000040, representing a gain of over 343% from its yearly low. This rally occurred amid record trading volumes, exceeding $3.4 billion in 24 hours.
But this euphoria masks real dangers. Data from Nansen shows that the supply of Bonk on exchanges has increased significantly in recent months, jumping from 21.1 to over 23.13 billion tokens. Meanwhile, “whales” – large investors – have massively dumped their positions, reducing their holdings by more than 25% in just one month.
Concerning Technical Signals in the Short Term
Technical analysis confirms the risks for Bonk. The token is in overbought territory, with a relative strength index at 82 and a stochastic oscillator near extreme levels. Additionally, Bonk has significantly exceeded its 50 and 100-day moving averages, raising fears of a substantial correction in the short term.
The next crucial support level to watch is at $0.000027, which is close to the high reached on May 12. More importantly, this represents a significant POC (Point of Control) in the short term. From its current price, this would represent a drop of approximately 23%, offering a unique opportunity for a token that’s booming thanks to its bonkfun platform.
Despite its recent surge, the Bonk token presents significant downside risks in the short term. The excessive increase in supply volume and massive whale selloffs are warning signals that shouldn’t be ignored. Investors would be wise to remain cautious with this memecoin this weekend.
How to Buy BONK on Bitmart ?
A drop like this would present an opportunity to seize for a memecoin that continues to grow. In fact, its Bonkfun platform has surpassed the leader Pumpfun. Here’s a guide to buying BONK before its rebound toward new highs in the coming weeks :
- Registration : Create an account on Bitmart with an email address and a secure password. Validate via the email received and activate 2FA.
- Fund Deposit : In the “Wallet” section, deposit USDT or another cryptocurrency via a compatible network (e.g., ERC-20 for USDT).
- Find BONK : Go to “Markets” and select the BONK/USDT pair. Check liquidity to avoid price gaps.
- Purchase Order : Choose a market order to buy at the current price or a limit order for a target price. Confirm the quantity of BONK.
