BONK: Investors suffer heavy losses, is there a chance to recover?

Bitcoin (BTC) established a bottom at 74,500 USD on April 7 before bouncing back 7%, reaching 80,000 USD. This created momentum for the altcoin bulls to recover slightly, helping the price of Bonk (BONK) increase by 16.5% from the bottom.

Notably, the bulls have successfully defended the support level of 0.0000096 USD for BONK since the beginning of March during the recent sell-off.

The BONK wallet activity is gradually decreasing

Source: GlassnodeData from Glassnode shows that BONK’s on-chain activity is gradually weakening. The number of active addresses peaked at 54,914 on November 17, but is still much lower than the peak in January and February 2024.

Since then, the number of active addresses has continuously decreased, with only a few short-term recoveries. This reflects a waning interest in BONK, a prevailing bearish sentiment, and a lack of strong buying demand compared to before.

Source: GlassnodeSimilarly, the 7-day moving average of new addresses is also gradually decreasing, indicating that user participation is becoming less. For BONK to truly recover, this downward trend needs to be reversed.

BONK investors suffer the largest loss since Q4 2023

Source: GlassnodeThe Unrealized Loss Index relative to (RUL) is at its highest level since March 2023, meaning many investors are holding BONK at a price higher than the current market price.

Although this may signal that BONK is undervalued, it does not mean that the downtrend has ended.

Source: GlassnodeAdditionally, the Net Unrealized Profit/Loss (NUPL) index also indicates a state of serious losses. This index has plummeted uncontrollably since December and is currently still in the “capitulation” (capitulation) zone, although not to the extent of severity seen in October 2023.

Source: GlassnodeThe actual market capitalization of BONK is currently at 1.8 billion USD, while the market capitalization is only nearly 800 million USD. This discrepancy indicates that many investors have sold at a loss over the past two months.

To be able to reverse the trend, bulls need to monitor the increase in address activity as well as the recovery of real capitalization. In addition, the price movement of BONK and BTC in the long-term will also be an important factor determining whether this memecoin can break out again or not.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• BONK is struggling to recover after a drop of 85%, where will the price go?
• Bonk faces 27% drop as downward pressure mounts: Is this possible?

Itadori

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^=“wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb”] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^=“wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb”] { width: 728px; height: 90px; } }