BONK falls 5% in 24 hours: Are the tides turning?

• BONK witnessed a massive decline as social sentiment waned.
• Traders turned bearish and started taking short positions.

Bonk [BONK] took the meme coin world by storm as it grew in popularity over the last few months. However, all the hype around the token seemed to have dissipated in recent days.

A free fall

At press time, BONK was trading at $0.00001301, with a price decline of 5.75% in the last 24 hours. This decline, which started on the 15th of December, hasn’t stopped since.

After the price of BONK started to fall, the meme coin saw multiple lower lows and lower highs, exhibiting a bearish trend.

The RSI of BONK also fell considerably during this period and sat at 40.83 at press time. This suggested that there was no bullish momentum surrounding BONK at the time of writing, making the chances of reversal relatively weak.

Source: Santiment

No clout causes doubts

The fall in BONK’s price could be traced to its declining social volume. A large part of a meme coin’s price movement is driven by its popularity on social media.

This was also reflected in BONK’s Weighted Sentiment, which sat at -0.302 at press time.

Thus, the negative comments around BONK outnumbered the positive ones by a large margin, which could further impact BONK’s future growth prospects.

Realistic or not, here’s BONK market cap in BTC’s terms

Source: Santiment

Bears get wary

Similar to social sentiment, AMBCrypto’s analysis of Coinglass’ data showed a massive switch in trader behavior. In the last few weeks, the percentage of short positions taken against BONK grew from 48% to an alarming 59%.

A vast majority of traders seemed to be betting on BONK’s price declining further.

Only time will tell whether the popularity and the meteoric rise of BONK was truly short-lived, or if there is a redemption arc ahead.

Source: Coinglass

The effects on Solana

The decline in BONK’s interest can cast a shadow of doubt on Solana as well. Over the last few months, activity on Solana surged, with meme coins playing a huge role in attracting activity towards the network.

If the decline in interest in BONK is indicative of a larger trend, there could be problems for the Solana network going forward.

However, there was no such indication at press time. The Daily Active Addresses on the Solana network stood at 696.09k, showing no indications of major movements.

Source: Artemis