Bonk Faces Selling Pressure as Whales and Traders Exit

Bonk Price Under Pressure as Whales and Smart Money Investors Exit Positions

Bonk, currently the second-largest meme coin on the Solana network, faces potential downward pressure as major investors, including whales and smart money traders, reduce their holdings. As of Wednesday, Bonk was trading at $0.00002053, reflecting a 20% decline from its monthly high.

Whales and Smart Money Investors Cut Holdings

Recent data highlights a notable reduction in Bonk holdings by both whales and smart money investors, signaling possible bearish sentiment. Investors holding between 1 million and 10 million Bonk tokens have sold off 500 million tokens since December. Additionally, wallets containing between 10 million and 100 million tokens now collectively hold 1.44 trillion tokens, down from previous levels. Large holders with 100 million to 1 trillion coins have similarly reduced their holdings to 1.44 trillion tokens.

According to analytics platforms, whale holdings have decreased by 15% in the past 30 days. Moreover, Bonk held by smart money investors has dropped significantly, from 33.4 billion tokens in April to just 15.6 billion currently. This trend could indicate expectations of further price declines among experienced traders.

Rising Exchange Balances Signal Increased Selling Pressure

Another bearish indicator for Bonk is the increase in exchange balances. Data reveals that Bonk’s exchange reserves have climbed to 19.6 trillion tokens, up from this month’s low of 19.4 trillion. Rising exchange balances often suggest heightened selling pressure, as more tokens become available for trading.

Technical Analysis: Bearish Patterns Emerge

From a technical perspective, Bonk’s recent price movements suggest potential further declines. The four-hour chart shows that Bonk peaked at $0.00002577 earlier this month but subsequently formed a double-top pattern—a bearish signal. Following this, the token fell to $0.00001815, aligning with an ascending trendline that has connected recent lows since April 7.

Bonk has since developed a bearish pennant pattern, characterized by a sharp downward move followed by a symmetrical triangle. As the two trendlines of this pattern approach convergence, a bearish breakdown could occur. If this happens, the token may retest $0.00001815, its lowest swing this month. A further decline could push Bonk toward the 50% Fibonacci retracement level at $0.00001730.

Key Takeaways for Investors

For investors monitoring Bonk’s performance, here are some critical points to consider:

• Whale Activity: The reduction in whale holdings suggests that major investors may be preparing for further price declines.
• Smart Money Trends: A sharp drop in smart money holdings indicates bearish sentiment among experienced traders.
• Exchange Balances: Rising token reserves on exchanges could lead to increased selling pressure.
• Technical Patterns: The formation of bearish technical patterns may signal further downward movement in Bonk’s price.

Investors should remain vigilant and consider these factors when evaluating their positions in Bonk or similar meme coins.