BONK’s price is no stranger to volatile moves, as the meme coin managed to chart a new all-time high and attempted to chart another.
As the latter failed to succeed, the altcoin fell massively, which could be followed by consolidation.
BONK Investors Lose Optimism
BONK’s price has been declining, not just on the charts but also in holders’ confidence. Evident in the asset’s Open Interest, investors seem to be pulling their money out of investing in BONK in any way.
In the last 48 hours, Open Interest fell by $8 million, bringing it down to $16 million from $24 million. While the funding rate is still positive, suggesting a dominance of long contracts, the drop in OI is still bearish for BONK.
BONK Open Interest. Source: Coinglass
However, the Relative Strength Index (RSI) holds above the neutral line at 50.0. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements on a scale of 0 to 100. It helps identify overbought or oversold conditions, with readings above 70 indicating overbought and below 30 indicating oversold.
BONK RSI. Source: TradingView
Generally, the indicator bouncing into the bullish zone is considered to be a bullish outcome. If BONK faces the same, it could bounce back.
BONK Price Prediction: Neither up nor Down
The BONK price could be seeing sideways action because of the mixed signals across the market. While the OI exhibits bearishness, the RSI counters it with bullish signals. As a result, BONK is looking at consolidation.
The meme coin could remain stuck between $0.00003769 and $0.00003182. This would allow the crypto asset to regain its investors’ confidence before initiating a rally.
BONK Price Analysis. Source: TradingView
Should the meme coin break out of the upper limit of the consolidation, it could head towards $0.00004000. This would enable further rally, invalidating the neutral-bearish thesis.