BONK Price Prediction: Will BONK Recover or Nosedive After Airdrop Event?

BONK price is seemingly facing a bearish outcome simply due to the lack of support from the investors. The investors do not appear very bullish

BONK price might be up for grabs by investors looking to capitalize on its recent surge. However, a closer examination of the technicalities reveals a bearish outlook.

Fresh analysis shows a shift in market cues, highlighting a scenario where investors are pulling their funds out of the asset and even funding a downtrend in BONK’s price. This trend is concerning and suggests a lack of confidence in the meme coin.

Chaikin Money Flow (CMF) Indicator Shows Increasing Selling Pressure

The Chaikin Money Flow (CMF) indicator is used to gauge the strength of an asset’s price movement and identify potential turning points. A value above 0 indicates net inflows, while a value below 0 indicates net outflows.

In the case of BONK, the CMF indicator has been below the neutral line for the past few days. This suggests that there are more outflows than inflows, indicating that investors are pulling their funds out of the coin.

Despite a slight rise in the indicator, the downtrend continues to dominate, suggesting a lack of confidence among investors. This is further supported by the meme coin’s negative funding rate.

A negative funding rate implies that short positions are dominant, with traders paying a premium to maintain their bearish bets. This contrasts with a positive funding rate, which is typically associated with a majority of long positions.

The combination of rising selling pressure and a negative funding rate paints a concerning picture for BONK’s short-term prospects. Investors pulling out their funds and betting against the coin could lead to further downward pressure on its price.

This trend could be a response to broader market conditions or specific issues related to BONK.

BONK Price Chart Displaying Critical Support Test

At the time of writing, BONK’s price is trading at $0.00002221. It is facing critical support at $0.00002153.

An attempt to fall below this support has been made twice now, and the meme coin is looking to recover from it. However, investors are not supporting this recovery.

The technicalities mentioned above suggest that a drawdown is likely. If the support of $0.00002153 is broken, the BONK price could fall to $0.00001375, extending the losses.

But if the meme coin bounces back, it could potentially reclaim $0.00002748 as support. This would invalidate the bearish thesis and even turn the investors’ sentiments bullish.

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