Bonk price may rebound as whales buy 80 billion tokens
Bonk price crashed for five consecutive days, reaching its lowest level in two weeks as sentiment in the crypto industry worsened.
- Bonk price crashed amid the ongoing crypto market plunge.
- Whales bought 80 billion BONK tokens as the crash intensified.
- Exchange balances also plunged, which is a bullish sign.
Bonk (BONK), the second-biggest Solana (SOL) meme coin, dropped to a low of $0.00001980, its lowest level since Sep. 5. It has dropped by almost 50% from its highest point this year, with its 24-hour volume being $382 million.
The coin’s crash coincided with the ongoing crypto market plunge. Bitcoin (BTC) dropped below $112,000, while the market capitalization of all coins fell by 3.7% to $3.98 trillion.
On the positive side, there are signs that whales expect the coin to rebound in the coming days. Nansen data shows that whales bought 80 billion tokens on Monday, bringing their total holdings to 2.61 trillion.
The whale purchases led to a sharp decline in the amount of BONK tokens on exchanges. There are now 23.98 trillion tokens on centralized exchanges, down from 24.7 trillion a day earlier.
Exchange outflows, especially during a crypto crash, are a bullish sign because they indicate that investors are not selling. They also signal that investors are moving their tokens from exchanges to self-custody, a sign that they expect the price to rebound.
Bonk price technical analysis
The 12-hour chart shows that the Bonk token has plunged in the past few months, moving from a high of $0.00004075 in July to $0.00002100.
It has crashed below the 50-period and 100-period exponential moving averages, a sign that bears are in control.
On the positive side, the coin has settled at the 61.8% Fibonacci retracement level, where most rebounds happen. It has also formed a double-bottom pattern at $0.00001950 and a neckline at $0.00002757, its highest point on Sept. 13.
Therefore, the bullish double-bottom pattern and the whale accumulation are signs that this crash is a shakeout that will result in a rebound in the near term. If this happens, the next point to watch will be $0.00002757, the neckline of the double-bottom pattern.
