Short Positions Increase for BONK

As the bears announced their presence, interest in BONK grew and short positions grew in response to the drop in value.

You might like: New Zealand Central Bank Governor Slams Stablecoins

Traders More Likely to Short BONK Rather Than Long

As reported by CoinMarketCap, BONK, previously prominent in the Memecoin space, has suffered a significant drop in value, losing 10.30% in the last 24 hours. At the same time, BONK’s trading volume decreased by 45.24% to 121.65 million at the time of writing.

This significant price drop follows a brief rally earlier in the year, and BONK has struggled to gain momentum since January 11. During this time, the cryptocurrency has exhibited numerous lower highs and lower lows, indicating a bearish trend.

In terms of technical indicators, BONK’s Relative Strength Index (RSI) has dropped from 68.30 to 52.95 in recent days. The decline in RSI signals weakening upside momentum and a potential increase in selling pressure. Additionally, Chaikin Money Flow (CMF) for BONK fell from 0.22 to 0.03, indicating a decrease in the strength of money flowing into the asset and a potential shift in market sentiment towards selling.

As for investor sentiment, short positions against BONK increased to 52.6% at the time of writing. This increase in short positions indicates a growing bearish sentiment, with traders expecting its price to fall further.