BONK woofs its way onto Coinbase – Here’s what you need to know
Journalist
Posted:
- Coinbase has announced plans to list BONK.
- Bearish sentiment ravages the spot market as demand for BONK declines.
Following its inclusion on KuCoin at the end of November, leading cryptocurrency exchange Coinbase has announced plans to list dog-themed token BONK on its platform.
BONK’s price surged to an all-time high of $0.000014 shortly after it was listed for trading on KuCoin. Due to the “Coinbase effect,” many token holders expect another rally period following BONK’s eventual listing on the exchange.
What should you expect in the meantime?
Although still up by 22% in the last week, BONK has declined by 30% from its all-time high recorded on 9th December.
At press time, the altcoin exchanged hands at $0.000009829, data from CoinMarketCap showed. Despite the news of Coinbase’s decision to list the altcoin, its value plummeted by 24% in the last 24 hours.
Source: CoinMarketCap
While accumulation persisted amongst spot market participants, there has been a significant decline in demand for BONK in the last 12 hours. Readings from the token’s momentum indicators observed on a 12-hour chart revealed this.
At press time, BONK’s Relative Strength Index (RSI) and Money Flow Index (MFI) trended downward, poised to breach their respective center lines. This showed that selling pressure was starting to outpace BONK accumulation.
Moreover, signaling a decline in liquidity inflow into the BONK market, its Chaikin Money Flow (CMF) was 0.02 and about to cross over into the negative territory at press time.
When an asset’s CMF value is 0.02 and trending downward, it indicates that there is an outflow of money from the asset. This is a sign that the positive sentiment trailing the asset is losing momentum, and its price is likely to experience a further decline.
The token’s Moving Average Convergence/Divergence (MACD) indicator returned a red histogram bar for the first time since the month began, confirming the rise in bearish sentiments.
Realistic or not, here’s BONK’s market cap in BTC terms
AMBCrypto found that the MACD line crossed below the trend line on 12 December. Whenever this happens, it suggests that the upward momentum has weakened, and a downward trend may start.
Many investors consider it a good time to consider selling or shorting the asset, hence the price decline.
Source: BONK/USDT on TradingView
