Why BONK might remain bearish despite this new development

  • Positive sentiment around BONK has spiked in the last few days.
  • A few market indicators looked bullish, but the rest suggested otherwise .

BONK investors received some good news on the 5th of March when it was announced that the memecoin will be listed on Robinhood. Such a listing often has a positive impact on a token’s price. However, things might be different on this occasion, as the market turned bearish. 

BONK to turn bullish again?

Listing on big exchanges generally sparks bullish sentiment around a token. This increases the chances of a price uptrend.

The token’s social dominance spiked after the news. Additionally, positive sentiment around the memecoin also went up, hinting at a price uptrend.

Bonk BONK 11.42.48 06 Mar 2024.png

Source: Santiment

But things were differentl this time, as the meme coin’s daily chart turned red. According to CoinMarketCap, the memecoin was down by more than 4.5% in the last 24 hours.

At the time of writing, the token was trading at $0.00003272 with a market capitalization of over $2.1 billion, making it the 49th largest crypto.

BONK investors must be patient

Though the meme coin was getting listed on a major exchange, metrics looked bearish.

Our analysis of Coinglass’ data pointed out that the meme coin’s funding rate went up while its value dropped. This suggested that derivatives investors were buying BONK at its low price.

Screenshot 2024 03 06 at 11.49.24 AM.pngScreenshot 2024 03 06 at 11.49.24 AM.png

Source: Coinglass

We then took a look at the memecoin’s daily chart to better understand what to expect from it in the coming days. The analysis revealed that BONK’s price managed to go above a key resistance zone of $0.0000157.

Its MACD displayed a clear bullish advantage in the market, suggesting a northward price movement. After a short decline, the Chaikin Money Flow (CMF) gained upward momentum, further increasing the chances of a trend reversal. 

Realistic or not, here’s BONK’s market cap in BTC terms 

However, its Relative Strength Index (RSI) was in the overbought zone. This might exert more selling pressure on the meme coin, which can have a negative impact on the token’s already declining price action.

If the price correction continues, the memecoin might plummet to its earlier resistance level in the coming days. 

BONKUSDT 2024 03 06 12 02 49.pngBONKUSDT 2024 03 06 12 02 49.png

Source: TradingView

Next: Why smart investors are snapping up BEFE before Binance: Your ticket to massive profits!

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