Bonk Price Prediction: Solana Meme Coin BONK Plunges After Binance Listing, Just Like Pepe Coin Did. Too Late To Buy BONK?

BySteven Walgenbach

Updated: 23 November 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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The BONK price dropped more than 6% over the past 24 hours to trade at $0.00000439 as of 8:42 am EST as traders begin to cash in some of their profits from the altcoin’s strong surge throughout the past month.

BONK has been a hot topic in the market after its capitalization soared more than 1,800% in the past 4 weeks. This has resulted in the meme coin significantly outshining the market leader, Bitcoin (BTC).

BONK Price At Risk Of Steep Price Drop

This positive momentum may, however, be coming to an end. On Wednesday, Binance, the leading cryptocurrency exchange, listed perpetual contracts with 50X leverage linked to BONK.

Historically, the decision by an exchange to list perpetual contracts tied to smaller-capped cryptocurrencies has led to strong price drops.

These perpetual contracts are a type of futures contract with no expiry date. This allows investors to speculate on the underlying asset’s price while bypassing the physical settlement of goods involved in standard futures contracts. Investors also get to enjoy far greater leverage opportunities than standard contracts.

The most noteworthy example of the effect that perpetual contracts can have on the price of a cryptocurrency is Pepe (PEPE). This meme coin emerged from nowhere and saw its market cap surge from nearly $0 to $1.5 billion.

Binance then listed perpetual futures tied to PEPE. The meme coin’s market cap peaked that day before falling to as low as $380 million in the following month, according to Coingecko data.

Daily chart for BONK/USDT (Source: TradingView)

From a short-term technical perspective, the BONK price has consistently printed higher lows over the past weeks and may attempt to surpass the $0.0000055530 resistance level.

If it breaks above this barrier, it may embark on a journey to set a new all-time high in the next few days. However, this bullish thesis may be invalidated if BONK fails to close a daily candle above $0.0000055530 within the next 72 hours.

The cryptocurrency’s price could pull back to the key $0.0000029830 support level in this more bearish scenario. A wave of profit-taking activity may then enter the cryptocurrency’s charts, which could push the BONK price down significantly lower.

This potential sell volume could drag the altcoin’s value down to as low as $0.0000015730 in the short term.

A Shift in BONK’s Momentum

Technical indicators on BONK’s daily chart suggested that buyers are starting to exit BONK’s order book. More specifically, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators signaled a bearish shift in BONK’s momentum that may occur soon.

The daily RSI line was positioned below the RSI Simple Moving Average (SMA) line. In addition to this, the RSI line was sloped negatively towards oversold territory. This suggests that sellers have gained the upper hand against bulls on BONK’s daily chart.

The MACD Histogram indicator’s flat gradient could also indicate BONK’s positive momentum slowing down. This allows bears to step in and drive the BONK price down in the next couple of days.

While BONK is at risk of a strong pullback, Meme Kombat is a meme-based gaming platform on the verge of taking off.

Bringing Some Much-Needed Utility to Meme Coin Market

Meme Kombat is an innovative gaming project that allows holders to bet on battles that are scheduled to take place within its ecosystem. There will also be more-hyped battles on which investors can place bets and stand the chance to win very lucrative rewards.

Besides the chance to win big, Meme Kombat’s staking program currently offers holders an annual percentage yield (APY) of more than 470%. Anyone who purchases MK, the project’s native token, through its presale will automatically have their tokens staked for them.

Attracting Attention Of Whales

This whale made sure they got into $MK at $0.205 🤩

24 hours to go before we increase to $0.214 ⏰ pic.twitter.com/hh6XN0LoJ0

— Meme Kombat (@Meme_Kombat) November 22, 2023

Over the past 24 hours, Meme Kombat saw a whale buy into its presale. According to an X post, this smart money investor bought more than $18,000 worth of MK. Other investors have also rushed to scoop up this promising altcoin, as its presale has already raised over $2 million.

Given the growing popularity of meme coins and the high levels of utility on offer within the Meme Kombat ecosystem, MK’s price is likely to soar more than 10X in the coming few months.