BONK Short-Term Holders Face Major Losses Amid Continuing Downtrend

• Recovery Not in Sight; Memes Must Lead Sector Recovery

The memecoin market has performed poorly in the past month, with Bonk (BONK) experiencing a steady downtrend.

Data from Artemis indicates that memes have been among the worst performers in the crypto sector, suffering a 41% drop in fully diluted market capitalization. The average performance over the past month was -30.2%, while Bitcoin (BTC) was down -19.2%. The meme sector as a whole faced a decline of -41.5%.

Price Expectations for BONK: Bears Still in Control

Bonk has been in a significant downtrend in recent months. Following gains in November, bulls have struggled to maintain key support levels, leading to BONK falling below November lows in early February.

At press time, BONK was down another 23%, retesting April 2024 support with no guarantee that the price wouldn’t dip lower. Traders and investors should anticipate a continued downtrend.

A highlighted fair value gap shows a potential for a 15% price bounce in the coming days before the downtrend resumes.

The short-term holder net unrealized profit/loss (STH NUPL) indicates severe losses, with the value at -1.22 and dropping to -1.35 on February 24th. This figure mirrors the low NUPL levels from April 2023, where a price bounce followed, though causation is uncertain.

In October 2023, Dogecoin (DOGE) rose from $0.056 to $0.092 in December, coinciding with a BONK rally of over 100x. It’s conceivable that a DOGE rally could spark a BONK recovery, but as conditions stand, traders should expect bears to remain in control.