Bonk (BONK), the Meme Coin Coin on the Solana platform with the 2nd largest market cap, saw trading volume reach $1 billion today. This milestone comes after BONK’s price increased 43% in the past seven days.
While many traders may have expected the BONK volume spike to be a positive sign, on-chain analysis suggests this may not be the case.
Bonk Increases Concern, But Optimism Declines
Data from on-chain analytics platform Santiment indicates that Bonk’s volume on November 9 was around $125 million. Trading volume is an important indicator in the cryptocurrency market, reflecting the popularity of a coin and hinting at the direction of the price.
High volume often indicates increased interest. Conversely, low volume indicates waning interest. Therefore, the increase in BONK volume to $1 billion represents increased interest in this Meme Coin Coin.
From a price perspective, increased volume can be positive, but only if the value of the cryptocurrency also increases. But in the past 24 hours, BONK price fluctuated around 0.000026 USD. If this situation continues, Meme Coin Coin may have difficulty maintaining its recent 43% gain.
Not just volume, the Weight Sentiment Index is another indicator that BONK may have difficulty continuing to increase in price.
The Weighted Sentiment Index adjusts value by taking into account the number of mentions, normalizing the data to make the sentiment of different assets more comparable. This means that peaks or troughs in the index occur when there is a high number of mentions for a particular coin.
As for Meme Coin Coin Solana, sentiment turned negative, suggesting that the majority of comments on the cryptocurrency are pessimistic. If this trend continues, demand could weaken, leading to the possibility of price consolidation or decline.
BONK Price Forecast: Possibility of Slight Reduction
On the daily chart, Bonk price continues to show signs of possible upside. This is also supported by the increase in the Money Flow Index (MFI).
MFI is an indicator that measures buying and selling pressure through the analysis of both price and volume data. The index ranges from 0 to 100, where an MFI above 80 signals overbought conditions, suggesting a potential selling opportunity, while an MFI below 20 indicates oversold conditions, signaling a strong buying opportunity. .
With the index near 80, BONK could soon fall into overbought conditions. If this happens, the value of Meme Coin Coin could drop to 0.000023 USD. However, if Bonk’s volume continues to increase and BONK finds solid support around $0.000026, the price could surge to $0.000030.