Bonk Price Sees Bearish Drop as Traders Support New Coin Solana Meme

Amid broader market consolidation, Bonk fell 8.4%, currently priced at $0.00001219.

However, traders remain bullish on Solana meme coins. Indeed, the recently launched Smog token captured Bonk’s liquidity, reaching a market cap of $34 million in its opening week.

Bonk risks further decline as it approaches critical level

The meme coin market is very attractive, leading to volatile swings in both directions. This is reflected in the recent price action of Bonk, which was one of the best performers last week. Subsequently, it pumped more than 20% in a day but gave up 8.4% today.

But the selloff raises concerns as Bonk approaches a key structural level, which could lead to a deeper retracement.

The chart below shows Bonk falling halfway between long-term support and a recent high. However, with few structural levels between the mid-range and support, a break below indicates bearish momentum.

Therefore, Bonk’s near-term trajectory depends on its response to the current level.

Bonk’s previous surge followed an announcement that holders can now lock their tokens to earn rewards through an initiative led by Armada.

However, derivatives data from Coinglass shows Bonk’s open interest fell 19% today, with $271,000 of long positions liquidated compared to $45,000 of short positions. At the same time, its financing rate has also fallen.

This illustrates that the market may have become overconfident after the announcement, leading to more leveraged buy orders, which created a cascading effect once Bonk found resistance.

Nonetheless, while the crypto market is on the verge of a bull rally, analysts remain optimistic about Bonk’s mid-term trajectory.

According to TradingView analyst The Trading Wizard, Bonk could explode to $0.000033 after breaking a descending triangle within 4 hours.

The analyst explained: “BONKUSDT finally broke the descending triangle after almost two months of consolidation. Ideally the price would be retested and continue its upward movement, I am optimistic about the arrival of the altcoin season.

However, with Bonk currently approaching a critical level, it is important to remain aware of downside risk.

This is why many meme coin traders take a diversified approach. But in addition to managing risk, diversification also provides exposure to more projects that could blow up.

In recent days, an important alternative to Bonk has appeared, called Smog. The token soared after launching on Solana last week, but raised eyebrows after announcing it would go multi-chain, also launching on Ethereum.

Smog Airdrop and 42% Staking APY Attract Massive Interest and $34M Market Cap

Despite being less than a week into its run, Smog already holds a respectable market cap of $34 million.

While this presents significant room for growth, it also differentiates the project from most meme coins which have a lower market cap, presenting a higher volatility risk.

Smog got off to a hot start after its launch, which coincided with the announcement of a drop. The Solana network has recently become a hotbed for airdrops, so it’s no surprise that Smog has received a warm welcome.

Currently, the token has over 11,000 holders and 21,000 followers on X.

According to its website, 35% of the token’s total supply is reserved for airdrops, with 50% going toward marketing efforts, 10% for CEX launches, and 5% for DEX liquidity.

In a more recent announcement, the team explained that Smog was launching on Ethereum via the Wormhole cross-chain protocol.

This is a significant innovation, strengthening Smog’s potential to attract liquidity.

The Ethereum version also has a staking mechanism, offering an APY of 42%. Users can purchase the ERC-20 version on the Smog website or the Solana version on a DEX like Jupiter or Birdeye.

Solana Smog holders who want to stake their tokens must link them to Ethereum using Portalbridge.com and then deposit them on the Smog website.

Visit the Smog website

reference: watcher.guru

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