BONK’s open interest hits a 30-day low, signaling further decline in value
Dog-themed Solana-based meme coin Bonk [BONK] has experienced a significant drop in value over the past week, shedding 29% of its price. This decline comes as the futures open interest for BONK reaches its lowest level in the last month, indicating a potential further decrease in value.
According to CoinMarketCap, BONK is currently trading at $0.0000233 and has been the cryptocurrency asset with the highest losses in the past seven days. The drop in price can be attributed to the decreasing open interest in BONK futures, which has plummeted by 60% since March 5th.
When open interest decreases, it suggests a lack of interest or participation from traders in the derivative market for that asset. This shift in investor sentiment often leads to profit-taking or cutting losses, resulting in a decline in value.
More troubles ahead for BONK
As the hype around meme assets begins to fade, BONK’s weighted sentiment turned negative on March 16th, indicating a bearish outlook among market participants. Key technical indicators, such as the Aroon Down Line, Chaikin Money Flow, and Relative Strength Index, also confirm the presence of bearish sentiments in BONK’s price performance.
The Aroon Down Line, which measures trend strength and potential reversals, was at 85.71%, indicating a strong downtrend in BONK’s market. Additionally, the negative Chaikin Money Flow and RSI values suggest a decline in liquidity inflow and demand for the meme coin among spot market participants.
With BONK’s open interest at a 30-day low and key technical indicators pointing towards further decline, investors should remain cautious about the future performance of this Solana-based meme coin.
