Bonk price could slump soon as whales, smart money dump tokens
Bonk, the second-biggest Solana meme coin after Trump Coin, may be at risk of a significant drop as whales and smart money investors reduce their positions.
Bonk (BONK) was trading at $0.00002053 on Wednesday, down 20% from its monthly high.
Data from Nansen and Santiment shows that both smart money investors and whales have trimmed their Bonk holdings, a potential signal that they expect a reversal in price.
Bonk holders with between 1 million and 10 million coins have offloaded 500 million tokens since December. Similarly, wallets holding between 10 million and 100 million coins now hold 1.44 trillion tokens, while those with between 100 million and 1 trillion coins have also reduced their holdings to 1.44 trillion.
According to Nansen, whale holdings have dropped by 15% over the past 30 days, while tokens held by smart money investors have declined from 33.4 billion in April to 15.6 billion currently.
Nansen defines smart money investors as users with a consistent history of identifying bullish and bearish trends early, typically buying before a token rebounds and selling near local tops.
Additional data shows that Bonk’s exchange balances have risen to 19.6 trillion tokens, up from this month’s low of 19.4 trillion. Rising exchange balances are often viewed as bearish, as they typically suggest increased selling pressure from investors.
Bonk price technical analysis
The four-hour chart shows that Bonk peaked at $0.00002577 this month before forming a double-top pattern. The token then dropped to a low of $0.00001815, which coincided with an ascending trendline connecting the lowest swings since April 7.
Bonk has since formed a bearish pennant pattern, made up of a sharp downward move followed by a symmetrical triangle. The two trendlines of this pattern are nearing a confluence, which could lead to a bearish breakdown.
The initial target for this move is $0.00001815, the lowest swing this month. A break below that level would likely point to further downside, potentially toward the 50% Fibonacci retracement level at $0.00001730.
