BONK Price Faces Setback as Selling Pressure Grows

BONK’s price is heading downwards after the investors pulled their hand that was supporting the asset. 

In the future, the increasing selling pressure will likely extend the skepticism, sending the meme coin to new lows.

BONK Investors’ Bearishness Wins

BONK’s price likely suffers from the lack of recovery noted in the last 18 days following a 40% decline in two weeks. Recent data from the Chaikin Money Flow (CMF) indicates a significant outflow increase, substantially intensifying the market’s selling pressure. 

This trend has reached its highest point ever, suggesting a strong bearish sentiment among investors. The heightened selling pressure reflected in the CMF highlights the substantial outflow of capital. This signals a lack of confidence that might lead to offloading from BONK holders.

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BONK CMF. Source: TradingView

In addition to the CMF data, the funding rate has also turned negative this week, which is another bearish indicator for the market. 

The funding rate implies that traders are willing to pay a premium to maintain their positions. A negative funding rate exhibits short contracts dominating the market, while a positive funding rate suggests longer contracts. 

For BONK holders, a negative funding rate is particularly telling, as it indicates a consensus among market participants that the price of BONK is likely to drop.

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BONK Funding Rate. Source: Coinglass

The shift in funding rates reflects a broader market sentiment of pessimism, where the prevailing expectation is that current asset prices are unsustainable and likely to fall further.

BONK Price Prediction: Here Comes the Drop!

BONK price trading at $0.00002122 is already below the crucial support of $0.00002153. If the drawdown continues, the altcoin has but one chance at a bounce back from $0.00001941.

However, should BONK slip below this, too, it could note considerable losses, potentially falling to $0.00001375.

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BONK Price Analysis. Source: TradingView

But if it does manage to bounce back, it could attempt to recover the recent losses and flip $0.00002122 into support. This would enable a further increase in price and help BONK initiate a recovery rally.

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