Key Takeaways
BONK could face a 23% decline after breaking below a key support level on the chart. Liquidity outflows from the market, combined with technical indicators, reinforce the bearish outlook.
Bonk [BONK] joined the list of major decliners in the past day. According to CoinMarketCap, the asset led the market with an 8% drop.
Analysis shows that the decline could deepen in upcoming trading sessions after breaching a crucial support level. Liquidity indicators also warn that further losses may be ahead in the coming days.
Key support breaks—What’s BONK’s fate?
After weeks of strong gains, BONK now risks erasing a significant portion of those profits, as it broke down from a critical support level.
The breakdown of the $0.00002393 support could trigger a broader decline, potentially driving prices toward $0.00001835—the nearest support level.
Source: TradingView
If this next support fails to hold, BONK will likely continue on a downward trajectory, intensifying investor losses over the coming weeks.
While a rebound could be possible, AMBCrypto’s analysis suggests that a further breakdown in the days ahead cannot be ruled out.
Indicators point to intensifying losses
Technical indicators imply that the decline could worsen, with both the Money Flow Index (MFI) and Relative Strength Index (RSI) signaling weakness.
The Money Flow Index showed consistent liquidity outflows, at 50.97 at press time. If it drops below the neutral threshold of 50, the downtrend could accelerate and magnify BONK’s losses.
Source: TradingView
The Relative Strength Index also weakened, plunging below the neutral zone to a reading of 39.61.
A low RSI signaled fading momentum and confirmed that sellers now outweighed buyers, putting additional pressure on prices.
Off-chain data showed that activities among investor remained divergent, with bearish and bullish alignment.
Liquidity remains weak in the market
Market liquidity continued to weaken. At the time of writing, liquidity outflows have been increasing.
The Open Interest-Weighted Funding Rate indicated that although long positions outnumbered shorts, the metric trended downward as short positions rose.
Source: CoinGlass
If this reading slips into negative territory, BONK’s decline could intensify further in the coming weeks.
CoinGlass Spot Exchange Netflow data, however, showed some buying activity. Over the past three days, inflows have grown, with $2.55 million worth of BONK purchased in the last 24 hours.
Continuous accumulation by spot investors will add to the tendency for a rebound, or reduce the potential for a rapid decline due to massive sell-side presure.
