A lack of faith in the future of BONK, a meme coin, has been indicated by the fact that its price has dropped by over 40% this month.
The change in emotion is reflected in the financing rate, which reveals an increase in short positions, which gives the impression that negative expectations are present.
Contrarian investors believe that this negativity presents an opportunity, as they believe that increased fear and panic selling could result in a temporary bounce in the price of BONK.
The analysts at Santiment have observed that panic selling spikes typically occur after a decrease, which may present a potential opportunity for small traders to make a purchase in the midst of widespread anxiety and uncertainty.
In order to make a comeback, BONK must first break over the resistance level of $0.00002748, which will bring the price closer to $0.00003000. There is a possibility that it will fall below $0.00002000 if it is unable to maintain the support at $0.00002153.
It is important for investors to exercise caution and strategic thinking in the current market environment. They should keep a close eye on the funding rate and sentiment indicators in order to anticipate probable market changes.
The recent drop in the value of BONK exemplifies the unpredictable nature of meme coins and emphasizes the importance of investors remaining watchful and well-informed.
