BONK price crash leads to half a million Dollars in liquidations

BONK price has dropped by more than 26% in the last eight days after rallying 56% in three days.
Traders witnessed long contracts worth $562,000 being liquidated on Thursday.
Bonk’s fallout will likely continue towards $0.0000100, a monthly low.

BONK price is reinforcing the bearish narrative for the meme coin market after disappointing runs from Dogecoin and Shiba Inu. The lack of growth has already stumped investors, and the ones optimistic about witnessing a recovery are being shot down by the bearish market conditions.

Bearish Bonk causes broad losses

The Solana-based meme coin Bonk has joined the leagues of cryptocurrencies that are failing to produce any profits for investors. Earlier on Wednesday, BONK witnessed a massive correction that led to many traders losing their money as open positions contracted.

Long liquidations in a single day hit $562,000 due to the price decline. As is, the investors have been wary of the meme coin owing to the slow recovery, and with consistent long liquidations, traders might refrain from betting on a recovery.

BONK long liquidations

Long contracts signify that traders are expecting an increase in price, but when these expectations are invalidated over and over, these traders will begin holding back, reducing the bullish sentiment considerably.

BONK price decline could extend

BONK price trading at $0.00001189 is close to losing another support level marked at $0.00001137. In the last eight days, the meme coin has already declined by more than 26%, after losing the psychological support level of $0.00001500.

The Relative Strength Index (RSI) is also currently below the neutral line, marked at 50.0 in the bearish neutral zone. This suggests that the decline could extend, and if the $0.00001137 support is lost, a crash to $0.00001000 is likely.

BONK/USD 1-day chart

However, if the altcoin bounces back from the aforementioned support level, it could see potential recovery. This would be confirmed once the RSI flips the neutral line into a support floor. This would push BONK price beyond $0.00001306, invalidating the bearish thesis.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.