Bonk Price Prediction as Market Cap Falls Below $1 Billion – Will BONK Keep Falling?
The Bonk price has barely moved in the past 24 hours, remaining at $0.00001011 as the crypto market as a whole also holds still today.
BONK is now down by 15% in a week and by 6.5% in a month, with the meme coin’s recent falls pushing its fully diluted market valuation (e.g. maximum supply x price) below $1 billion.
In fact, BONK’s market cap (current supply x price) has been below $1 billion since the middle of January, with its current level of $615 million underlining the extent to which the coin has fallen out of favor.
Yet with analysts expecting a bull market later this year, and with BONK remaining fairly popular as a vehicle for whales, it could make a comeback eventually.
Bonk Price Prediction as Market Cap Falls Below $1 Billion – Will BONK Keep Falling?
BONK’s chart continues to show weakness, with its indicators signalling a loss of momentum that could worsen some more before a recovery arrives.
For instance, the coin’s relative strength index (purple) has slipped below 40, as part of a steady decline since mid-January.
And it could continue falling towards 30 or even lower before BONK’s rallies, with the coin’s price also recently falling below its 30-day moving average (yellow).
This fall below the 30-day often signals further incoming falls, although it may not be long before the current decline bottoms out.
Yet one thing that’s particularly worrying with BONK is that its 24-hour trading volume has all-but dried up, falling from just over $500 million in mid-January to about $43 million today.
That’s a massive (91%) decline, one which suggests that interest in BONK has more or less vanished in a matter of weeks.
The data suggests that there hasn’t been a significant transfer of BONK to or from exchanges in a month, with the last being a purchase of 3.29 billion BONK on January 9.
This smart trader who made ~$6.9M on $BONK spent 386 $SOL($40K) to buy 3.29B $BONK again today!
He accumulated 371.4B $BONK in 9 months at a cost of only 6,998 $SOL($276K) and sold half of the $BONK during the $BONK surge for 50,139 $SOL($5.2M).https://t.co/pOFRD2ndI8 pic.twitter.com/lkgGm13G0e
— Lookonchain (@lookonchain) January 9, 2024
The whale above is still holding onto 314 billion BONK, however, something which may indicate an expectation that the coin will rally again.
Yet it seems that the meme token will need a market-wide rally before it can begin rising again, given that it lacks fundamentals of its own.
Such a rally may follow – or precede – the Bitcoin halving in April, with the Bonk price potentially returning to $0.000020 around this time.
Meme Tokens with Fundamentals
For traders worried that BONK may never return to former heights, there are other high-potential meme tokens in the market right now.
One example with better prospects than most is Sponge (SPONGE), an ERC-20 cryptocurrency first that listed – and boomed – on centralized exchanges in April 2023.
It has just launched second version of its token, SPONGE V2, having discontinued the first version yesterday.
The reason for the update is that SPONGE V2 features a revamped staking model, while it will also be the native token of a play-to-earn racing game.
Exciting news, #SPONGERS! 🌟🧽🧽#SpongeV2 is now live! Visit our website to buy and stake $SPONGE V2.
Check it out below! 👇https://t.co/nFOSl1ZCD9#MemeCoin #Web3 #Crypto #Altcoins #CryptoStaking pic.twitter.com/T4DCAKhcxF
— $SPONGE (@spongeoneth) February 6, 2024
The upcoming P2E game will enable players to compete with each other and rank on a global leaderboard, with the game paying out SPONGE V2 tokens to the most successful.
What’s particularly bullish about SPONGE V2 is that its new staking model is more generous than before, with the protocol paying out 245% APY at the moment.
This rate fluctuates depending on how many tokens users stake and for how long, and it could even rise higher.
While it’s now too late to stake SPONGE V1 tokens to claim the newer and current version, interested investors can still buy SPONGE V2 by going to the official Sponge website.
Staking update! 🚀🧽
We now have over 6,589,653,557 $SPONGE tokens staked with a value of $3,308,731.05. 🤯
Make sure to stake your tokens before the #SpongeV2 transition on February 5th!
Enjoy our impressive current APY of up to 245%. 💪#Sponge #Memecoin #Crypto #Binance pic.twitter.com/Klp7VLQFIo
— $SPONGE (@spongeoneth) February 1, 2024
Over the coming weeks, SPONGE V2 will list on various exchanges, where it could experience a rally that outdoes the surge its predecessor experienced last year.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
