Solana

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Bonk

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<img decoding="async" width="1280" height="720" src="https://coingape.com/wp-content/uploads/2024/06/bonk_11zon.png" class="attachment-full size-full wp-post-image" alt="bonk price" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/06/bonk_11zon.png 1280w, https://coingape.com/wp-content/uploads/2024/06/bonk_11zon-300x169.png 300w, https://coingape.com/wp-content/uploads/2024/06/bonk_11zon-1224x689.png 1224w, https://coingape.com/wp-content/uploads/2024/06/bonk_11zon-768x432.png 768w, https://coingape.com/wp-content/uploads/2024/06/bonk_11zon-678x381.png 678w, https://coingape.com/wp-content/uploads/2024/06/bonk_11zon-150x84.png 150w" sizes="(max-width: 1280px) 100vw, 1280px">
BONK price plunged 1.6% to $0.000019 on Monday, bucking the general uptick in the broader crypto market. While the Bitcoin attempt to regain $60000 has uplifted most of the major altcoins, the meme cryptocurrency sector struggle follows. Will the weak momentum grow to prolong correction, or will buyers step in to reverse the trend?
<h2 id="bonk-price-hits-multi-month-support">BONK Price Hits Multi-Month Support</h2>
Since last month, the BONK coin price has witnessed a high momentum selling, which plunged the asset from $0.000033 to $0.00001745, registering a loss of 48.5%. The falling price now retests the support trendline of a rising channel pattern that has been intact since February 2024.&nbsp;
Theoretically, the chart pattern drives a steady recovery resonating with the two parallel trendlines. Though the bottom acts as crucial support, a potential breakdown below the lower trendline would also have a major impact.
<blockquote>
 According to <a rel="noopener noreferrer nofollow" href="https://blog.coinshares.com/volume-196-digital-asset-fund-flows-weekly-report-780616a8e754">Coin Shares</a>, the layer 1 blockchain Solana recently recorded the largest outflow of $39 Million. This significant outflow coincides with a sharp decrease in trading <a href="https://coingape.com/markets/solana-price-struggles-amid-39m-sol-outflow-declining-meme-coin-frenzy/" rel="noopener noreferrer nofollow">volumes for memecoins</a>, a category on which Solana has become increasingly reliant. This decline highlights the volatility and changing investor attitudes in the meme coin market, emphasizing the speculative nature of these assets.
</blockquote>
The <a href="https://coingape.com/price/bonk/" rel="noopener noreferrer nofollow">BONK price</a> trading below the daily EMAs (20, 50, 100, and 200) accentuates that the path to least resistance is down. Moreover, a potential death crossover between the 50-and-200-day EMA could accelerate the selling pressure.
Additionally, data from Coinglass shows that the BONK Open Interest (OI)-Weighted Funding Rate is at -0.0161, indicating a predominance of short positions. This negative rate reflects a bearish sentiment, as traders are willing to pay a premium to hold their short positions.&nbsp;
Should this trend persist, it could erode investor confidence further, potentially leading to a more significant decline in BONK price.
<figure id="attachment_213093" aria-describedby="caption-attachment-213093" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-213093" src="https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05.png" alt="BONK OI-Weighted Funding Rate" width="1537" height="436" srcset="https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05.png 1537w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05-300x85.png 300w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05-1224x347.png 1224w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05-768x218.png 768w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-19_23-30-05-150x43.png 150w" sizes="(max-width: 1537px) 100vw, 1537px">
 <figcaption id="caption-attachment-213093" class="wp-caption-text">
 BONK OI-Weighted Funding Rate | Coinglass
 </figcaption>
</figure>
Thus, a bearish breakdown below the lower trendline with a daily candle closing will bolster sellers to drive a prolonged correction. The post-breakdown fall could have plunged the asset 27% to $0.000012.
<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/t/tiTmCQBT.png" alt="Bonk Price " width="1946" height="893">
 <figcaption class="wp-caption-text">
 BONK/USDT 1-d chart
 </figcaption>
</figure>
Conversely, a jump in the ADX indicator above 30% suggests that the current downtrend may soon reach exhaustion, signaling that the asset is potentially oversold. This often leads to a shift in price trends, either sideways or towards a reversal to the upside.&nbsp;
If the bottom support holds, the Solana-based <a href="https://coingape.com/meme-coin/" rel="noopener noreferrer nofollow">meme coin</a> price could potentially drive a 30% upswing to $0.000023.
The post <a href="https://coingape.com/markets/bonk-price-200-day-declining-funding-rate/" rel="noopener noreferrer nofollow">Bonk Price Risks Losing 200-day Support Amid Declining Funding Rate</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Bonk Price Risks Losing 200-day Support Amid Declining Funding Rate

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