Bonk Price Unable To Break Out Of Bearish Range As Demand For Memecoins On Solana Declines 

The post Bonk Price Unable To Break Out Of Bearish Range As Demand For Memecoins On Solana Declines  appeared first on Coinpedia Fintech News

In recent weeks, memecoins on the Solana blockchain were witnessing a significant surge in value, achieving new all-time highs amid listings on various exchanges and a growing purchasing interest. Nevertheless, this trend has largely faded. The demand for Solana’s memecoins has seen a decline, and notably, the price of Bonk is finding it challenging to break out of its bearish range. This occurs even as the wider market holds a bullish sentiment ahead of the SEC’s decision on a spot Bitcoin ETF.

Solana’s Drop Below $100 Plunged Buying Interest

In the past week, Solana-based memecoins have seen a significant drop in demand, retracting much of their gains from December 2023. Major Solana memecoins like Bonk, dogwifhat, and Popcat have experienced declines of 22%, 57%, and 34%, respectively. Notably, Bonk has plummeted over 76% from its peak on December 15, 2023. Despite achieving a massive 11,000% gain last year and listings on major exchanges like Binance and Coinbase, Bonk is currently facing a steep decline.

Solana’s price dip below $100, following a $600 million crash, has led to a sharp fall in memecoin demand. Memecoin trades were a key driver of transaction volume on Solana for over a month, as per Dune Analytics. Among the top ten tokens by 30-day trading volume on Solana, two are memecoins, with the rest linked to stablecoins.

This drop in Solana memecoin prices has followed a decrease in daily active addresses on the network. Data shows a consistent decline in unique daily transaction addresses on Solana since mid-December, dropping from a peak of 981,380 on December 21 to just 614,008 in the first week of January.

Yet, the recent listing of Bonk on OKX has sparked hopes for a potential rebound from its current levels, possibly building an accumulation phase for Bonk’s price.

What’s Next For Bonk Price?

Bonk price continues to face rejection above the EMA20 trend line as sellers remain active near that level. However, buyers continue to defend the immediate support line as there’s a robust accumulation near $0.0000095. Bonk price recently witnessed a rebound from this level as the overall market recovers. As of writing, BONK price trades at $0.00001077, surging over 1.6% from yesterday’s rate.

The moving averages are hovering around the edge of a bearish crossover, and the Relative Strength Index (RSI) remains below the midline at level 45, suggesting rising bearish dominance. As the sellers are gaining momentum, the price might retreat from the 20-day Exponential Moving Average (EMA) at $0.0000108, plunging the memecoin to test $0.000009 support line.

A bullish rally could emerge if the Bonk price breaks past the descending resistance line. In such a case, the price might head toward $0.000015. However, this level might force short-term buyers to exit and focus on other leading coins, resulting in a correction.