Why Is BONK Crashing? Major Losses Hit Meme Coins as Bitcoin Drops Below $100K Simon Chandler | usagoldmines.com

Bonk has dived by 14% in the past 24 hours, falling to $0.00002959 as the crypto market drops by 8% in response to positive US economic data.

While the data indicates a growing US economy, it also dashes hopes of further rate cuts in the near future, something which has hurt stocks as well as Bitcoin and other cryptocurrencies.

BONK is now down by 32% in the past month, although the Solana-based meme coin holds on to a 190% gain in the past year.

And despite its steep losses today, its long-term price prediction remains bullish, with the coin likely to rise with the wider market.

Why Is BONK Crashing? Major Losses Hit Meme Coins as Bitcoin Drops Below $100K

Yesterday saw a triple whammy of economic releases which, when taken together, suggested that the US Federal Reserve won’t be cutting interest rates anytime soon.

The first came from the US Labor Department, which announced that job openings rose by 259,000 in November, to 8.098 million.

Secondly, the Institute for Supply Management revealed that its non-manufacturing purchasing managers index (PMI) climbed from 52.1 in November to 54.1 in December, exceeding expectations.

Its prices paid measure for input costs reached 64.4, which is the highest reading since February 2023.

And to top it all off, 10-year US Treasury yields rose to 4.699%, the highest since April of last year.

These three developments all had a negative impact on risk-on assets such as stocks and cryptocurrencies, with highly speculative meme tokens such as Bonk being among the worst affected.

Looking at Bonk’s four-hour chart today, its indicators suggest that it may have bottomed out already.

Its relative strength index (purple) has crashed to 30, indicating strong overselling.

And its 30-period moving average (orange) is on its way to hitting a new low in relation to the 200-period average (blue), against suggesting that a positive turnaround is near.

Based on these indicators alone, BONK should return to $0.0000320 in the next week or so.

This will set it up nicely for Donald Trump’s inauguration, which could provide the market with a new boost.

While some have suggested that the inauguration could be a sell-the-news event, the longer term implication of a new Trump administration is growth for crypto.

Trump may issue pro-crypto executive orders in the early days of his tenure, while lawmakers have made noises that comprehensive crypto legislation may finally arrive.

In such an environment, BONK may reach $0.000050 by H1, and $0.000070 by Q4.

New Altcoins with Bullish Fundamentals

Because BONK is a meme token, it can be hard to predict just how well it’s going to perform over the longer term.

Because it doesn’t really have any fundamentals, its performance is largely dependent on interest from whales, which can often move to other, newer tokens.

As such, some traders may want to diversify into newer coins already, with several presale tokens looking very promising right now.

One of the best of these is Solaxy (SOLX), which has already raised $9.2 million in its recently opened token offering.

Solaxy is gearing up to launch Solana’s first layer-two network, helping users to avoid failed transactions, outages and congestion.

While Solana has become more reliable since its spate of outages in 2022, dropped transactions and temporary outages have continued to affect the layer-one network during periods of peak traffic.

This creates a space for a layer-two solution such as Solaxy, which will also offer lower fees than its parent platform.

Within its side-chain, SOLX will be the exclusive means of paying transactions fees, which implies that the coin will attract considerable demand.

It will have a max supply of 138.046 billion SOLX, with 25% of this going to its sale and to community rewards.

Investors can join the coin’s sale by going to its official website, where SOLX is available at $0.001594.

Buyers can pay with ETH, USDT or fiat currency, although they should act quickly, since the sale will increase its price every few days.

The post Why Is BONK Crashing? Major Losses Hit Meme Coins as Bitcoin Drops Below $100K appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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