BONK Cryptocurrency Drops 10% Amid Market Correction

BONK, a cryptocurrency, experienced a significant drop of 10% over the past 24 hours, reaching $0.00002208 at the time of reporting. This decline was part of a broader market correction, exacerbated by profit-taking traders who deepened the sell-off. Despite the bearish metrics, the overall sentiment appears temporary, suggesting a potential quick recovery.

The position size of BONK in the market has seen a substantial decline, with the Open Interest dropping by approximately 20% to $27.8 million. This indicates that several running positions were liquidated as market sentiment turned against them. Liquidation data reveals that $95,370 in positions were closed, with long traders bearing the brunt of the loss, accounting for more than 50% of the total loss at $74,230.

However, there are signs of bullish hope. An analysis of market volume shows that the fall could end as traders grow exhausted. The 24-hour trading volume dropped by 41.91% to $77.18 million, falling alongside the price. This significant volume drop, coupled with the price decline, suggests that selling pressure is gradually fading and that there is insufficient momentum to continue the decline.

Spot traders in the market have continued to buy BONK despite the drop. Currently, this group of traders has acquired $4 million worth of BONK, moving the tokens into private wallets. This move from exchanges to cold storage implies that this group is more long-term focused on BONK’s potential. If this trend continues, it could cause a supply squeeze, leading to a drop in exchange reserves and driving demand upward, resulting in a major market rally for BONK.

Despite the decline in Open Interest, the overall derivative market remains bullish. The Open Interest Weighted Funding Rate remains positive at 0.0029%, indicating that longs still dominate, even as leverage resets. While the metric is trending downward, its positive value keeps BONK within a bullish market structure, at least for the time being.