🛑 BONK drops 18% as memecoins slide – Is another leg down coming?
$BONK saw a bullish structure shift in the first week of January. This breakout appeared highly promising, but has faltered massively since then.
The popular memecoin ranks 6th in the sector, sorted by market capitalization.
CoinMarketCap data revealed that the memecoin sector has been hit hard by the past week’s losses. The sector is down 15.47% collectively, and BONK was down 18.77%.
For comparison, the leading meme, Dogecoin [DOGE], has shed 14.5%.
As covered earlier, the bullish structure break in early January came when the downtrend’s swing point at $0.0000103 was breached. Subsequently, Bonk [BONK] rallied to $0.0000134 but fell back over the rest of the month.
Bitcoin’s [BTC] inability to stay above $94.5k over the past two weeks highlighted bearish pressure in the market, and BONK faced sizeable selling pressure.
Final looks
The Bonk breakout in early January was promising, but it did not go as the bulls expected it to.
A short-term price bounce followed by a bearish reversal is expected in the first week of February.