BONK dips 11% despite getting corporate treasury boost: check forecast

The cryptocurrency market had an excellent weekend but begins the new week bearish. After breaking above $122k on Sunday, Bitcoin has now dropped below $119k after losing 2.3% of its value in the last 24 hours. Altcoins are also in the red, with memecoins recording huge losses due to their volatile price actions. BONK, the native token of the Bonk ecosystem, is the worst performer among the top 50 cryptocurrencies by market cap. It is down 12% in the last 24 hours and could dip further if the bearish trend continues. BONK gets a $25m corporate treasury boost BONK’s poor performance comes despite the ecosystem getting a corporate treasury boost. Nasdaq-listed Safety Shot (SHOT) announced on Monday that it has taken a 10% revenue stake in Bonk.fun, among the largest memecoin launchpads on Solana. This latest development means that Safety Shot will receive $25 million worth of BONK for its treasury, aligning the public company directly with the platform’s growth. Furthermore, the Nasdaq-listed company revealed that it will issue preferred shares convertible into common stock and reinvest about 90% of its BONK.fun revenue into BONK token purchases. CEO Jarrett Boon pointed out that this latest development isn’t only about purchasing cryptos but acquiring a stake in “a highly profitable engine” within digital assets. Bonk’s launchpad, Bonk.fun, generated over $35 million in user fees in July, surpassing rival Pump.fun to become the highest-earning memecoin launchpad last month. Currently, Bonk.fun accounts for more than 80% of Solana’s daily new token launch market share. At its peak, the launchpad records over 20,000 tokens deployment, with daily volume surpassing $100 million. However, the corporate treasury boost didn’t result in the BONK’s price soaring higher as the broader crypto market recorded massive sell-off in the last 24 hours. BONK could bounce back $0.000030 despite bearish conditions The BONK/USD 4-hour chart is bullish and efficient despite the heavy selloff in the last 24 hours. The bullish chart suggests that there is no major break of structure to the downside and that buyers are still in control despite the ongoing correction. However, the technical indicators are getting weak, indicating that the bullish bias might change soon if the current trend continues. The MACD lines are crossing into the negative territory, indicating a pending bearish bias. Furthermore, the RSI has dropped to the neutral 50, suggesting that buyers are losing control of the market. If the bearish trend continues, BONK could drop below the TLQ and major support level at $0.00002358 in the coming hours. An extended bearish run would see BONK fall below $0.000020 for the first time this month. However, the market could bounce back on positive CPI inflation report later today. If that happens, BONK could quickly reclaim the first major resistance level at $0.02880. It could extend its rally towards $0.00003280 if the market pumps harder. The post BONK dips 11% despite getting corporate treasury boost: check forecast appeared first on Invezz

Source: Invezz