BONK Investors Turn Bearish as Price Faces Potential Drawdown

Experts have expressed their concerns about BONK. The meme coin allegedly suffers a bearish trend due to a lack of support from investors. The crypto industry has suffered a general decline due to inconsistent regulatory laws and investors pulling out due to volatility issues. Unlike assets like Bitcoin (BTC) and Ethereum (ETH), BONK has not yet found a solid investor base, so investors believe that as BONK investors turn bearish, the coin’s future is threatened. 

Why BONK Investors Turn Bearish.

Rising Selling Pressure

There has been massive selling pressure on the BONK network. The present BONK price is vulnerable and set for further decline; analysts suggest the decline is evident in the market cues. The Chaikin Money Flow (CMF) indicator exposes a steep correction as selling pressure increases. A recent crypto update indicates that the decline results from key investors pulling out investments from the coin. The CMF is below the neutral line, indicating more outflow on the network than inflows. Experts have noticed a slight rise, but the small peak does not justify or stop the downward trend and bearish sentiment. The indicator is dominated by the downtrend, which could signal a lack of confidence in investors in BONK. 

“In addition to the increasing selling pressure, there is also a noticeable trend of investors betting on a decline in BONK’s price,” stated Prashant Jha, crypto-journalist at Cointelegraph,

Negative Funding Rate

Experts believe that as BONK investors turn bearish, they will cause a negative funding rate by pulling out core investments. The negative funding rate suggests that short positions dominate, with numerous traders paying premiums to hold their bearish bets. A good recipe for decline is rising selling pressure and negative funding rates. This paints a concerning picture of the future of BONK and even its short-term prospects. Some experts believe that the entire market is shifting, and even big coins like Bitcoin (BTC) and Ethereum (ETH) are struggling to maintain balance in the turbulence of the crypto market. With investors turning bearish and pulling out investments, the coin may not survive the next cycle. 

Some experts blame the coin’s decline on bad tokenomics and general design. These analysts believe the coin lacks features that ensure stability and scalability in such a competitive crypto ecosystem. Thanks to solid design, Bitcoin (BTC) and Ethereum (ETH) have never suffered such a thing. 

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BONK Price Prediction: Key Support at the Test

Critical Support Levels

The BONK price has not been stable for months now. The coin’s price is $0.00002221. It somehow manages to stay above the critical support at $0.00002153. The coin has had two points where it almost fell below that line. BONK price is looking for recovery, but investors are unwilling to give any support. This typical bullish turn bearish situation is common in the cryptocurrency market. All the indicators point towards a drawdown that may lead to the coin’s demise. If the support of $0.00002153 is broken, the BONK price could fall to $0.00001375, amplifying the loss.

The latest crypto update suggests that this trend might be a response to broader market conditions or specific issues related to BONK. If this claim is correct, then a comeback is expected; the only problem is that no one can precisely predict when the comeback will happen. BONK investors turn bearish for obvious reasons, but there might still be hope.

Future Outlook

BONK investors allegedly turn bearish and withdraw their investments from the coin. The market sentiment indicates that the BONK price has a slim chance of recovery. As further decline is expected, more investors are pulling out, thus causing an insane price drop. 

The BIT Journal advises Investors to track key support levels and market cues closely. This will help investors stay updated on any significant price movements. The critical support at $0.00002153 will be a key level to watch in the coming days. If the BONK price manages to hold above this support, there might be a chance for recovery. However, if it breaks below, further losses could be expected.