Meme BONK price is on the way to recovery due to increasing investor pessimism.
In fact, this idea is based on a contrarian investment strategy, which involves facing the public.
Hope is fading for Meme coin investors
The decline in BONK prices has made investors increasingly pessimistic about the profit potential. Their sentiment reflects a lack of confidence in the future performance of the currency, and this shift in expectations is becoming more pronounced.
In fact, this change in behavior is evident in the asset’s weighted sentiment, representing a significant change from the previous optimism.
Another clear indicator of this shift is the financing rate. It reflects the cost of holding long positions and shows signs of bearish investor sentiment. A positive funding rate indicates that long contracts are dominating the market, while negative funding rates indicate larger short contracts.
In the case of BONK, the funding rate constantly fluctuates from positive to negative.
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BONK Price Prediction: Extending the decline
Analysts at blockchain analytics firm Santiment have noted the current market sentiment. They note increasing fear among investors. But if panic selling continues, this fear could lead to a temporary bounce and buying opportunity.
“Raises in sell mentions or profit taking are common after a decline, and a temporary bounce and buying opportunity may form if we see continued FUD and panic from small traders,” Santiment explained.
BONK’s price trading at $0.00002519 has fallen more than 40% on the daily chart in the past two weeks. This led to the price of the meme coin falling from $0.00004114 to the market price. The area between $0.00002748 and $0.00002153 has tested as a consolidation area in the past, and is an important support area.
If BONK price can bounce back and break $0.00002748, it could start its recovery back towards $0.00003000.
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However, if the support limit of $0.00002153 is lost, the meme coin could see a drop below $0.00002000, sending BONK to a two-month low.
Disclaimer
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