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.
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 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%, 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.