Bonk price remains under pressure this week after falling by 35% from the year-to-date high, even as smart money investors continue their accumulation.
Summary
- Bonk price has plunged into a bear market after falling by 35% from the year-to-date high.
- Smart money holdings have jumped by 317% in the last 30 days.
- Technical analysis points to an eventual rebound, potentially to the YTD high.
Bonk (BONK) token was trading at $0.00002655 on Monday, Aug. 11, bringing its market capitalization of over $2.15 billion.
Smart money investors buy as whales dump
Nansen data shows that smart money investors have taken opposing positions in recent months. Smart money investors have boosted their Bonk holdings to 30.42 billion, up by 317% in the last 30 days. It was the most purchased token by these investors, with $373,000 worth bought.
Whales, on the other hand, hold 2.06 trillion tokens, down from this month’s high of 2.17 trillion.
Smart money investors are those with a record of executing profitable trades, while whales hold large amounts of tokens that can significantly impact the price.
CoinGecko data shows that Bonk’s daily volume has pulled back to $500 million, while its futures open interest dropped to $36 million, down from Sunday’s $43 million.
Falling open interest and volume can signal accumulation, which can lead to further gains. Another bullish catalyst is that the weighted funding rate has remained positive since July 31. A positive funding rate indicates that investors anticipate the price to rebound.
Investors have also been pulling Bonk tokens from exchanges, with exchange outflows recorded for the past five consecutive days, a sign of continued accumulation.
Bonk price technical analysis
The daily chart shows that Bonk dropped to $0.000008953 in March and formed a small double-bottom pattern. A double bottom is characterized by two lower swings and a neckline at $0.00001543. The token then peaked at $0.00004060 in July before pulling back to the current $0.00002575.
Bonk has retested the crucial support level at $0.00002575, its highest point in May. A break-and-retest pattern is a common continuation signal.
It has also formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other, along with a mean reversion after retesting the 200-day EMA.
Therefore, Bonk will likely rebound and retest the resistance at $0.000040, up by 55% from the current level. This bullish forecast will be invalidated if it falls below the support at $0.00002338.
