The cryptocurrency market has experienced a downturn, with the Bonk price crashing for five consecutive days and reaching its lowest level in two weeks. This decline is attributed to the deteriorating mood in the crypto industry, which has affected various coins, including Bonk, the second-largest Solana meme coin.
The Bonk price fell to a low of $0.00001980, its lowest level since September, representing a nearly 50% drop from its highest point this year. The 24-hour volume of Bonk was $382 million, indicating a significant decline in market activity. The crash of Bonk coincided with the ongoing crypto market fall, with Bitcoin (BTC) falling below $112,000 and the market capitalization of all coins decreasing by 3.7% to $3.98 trillion.
Whale Activity and Exchange Balance Sheets
Despite the downturn, there are positive signs that the Bonk price may rebound in the coming days. According to data from Nansen, whales bought 80 billion Bonk tokens on Monday, increasing their total holdings to 2.61 trillion. This significant purchase suggests that whales expect the coin to recover and are accumulating tokens in anticipation of a price increase.
The whales’ buying activity has led to a strong decline in the amount of Bonk tokens held on centralized exchanges. The exchange balance sheets now hold 23.98 trillion tokens, down from 24.7 trillion a day earlier. This reduction in exchange-held tokens is a bullish sign, as it indicates that investors are not selling and are instead moving their tokens to self-custody, a sign that they expect the price to recover.
Technical Analysis of Bonk Price
The 12-hour chart shows that the Bonk token has fallen from a high of $0.00004075 in July to $0.00002100 in recent months. The token has crashed below the 50-period and 100-period exponential moving average values, indicating that bears have control. However, the coin has settled on the 61.8% Fibonacci retracement level, where most rebounds occur, and has formed a double floor pattern at $0.00001950 and a neckline at $0.00002757, its highest point on September 13th.
Bonk Price Diagram | Source: crypto.news
The bullish double floor pattern and whale accumulation are signs that this crash may be a shakeout that leads to a rebound in the short term. The next point of interest is the neckline of the double floor pattern at $0.00002757. If the Bonk price can break above this level, it may indicate a reversal of the current downtrend and a potential recovery in the coin’s value.
For more information on the Bonk price and the cryptocurrency market, visit https://crypto.news/bonk-price-may-rebound-as-whales-buy-80-billion-tokens/
