Short-term BONK holders at record losses! Is there more pain ahead?

• BONK short-term holders had been at a large loss as a result of relentless downtrend
• A restoration was not in sight, and main memes wanted to steer the sector’s restoration

The memecoin market has carried out abysmally up to now month, and Bonk [BONK] was in a gentle downtrend.

Knowledge from the crypto knowledge platform Artemis confirmed {that a} sector efficiency in crypto over the previous month positioned memes as a number of the worst performers.

Supply: Artemis

The memes have seen a 41% drop within the totally diluted market capitalization. The common efficiency up to now month was -30.2%, and Bitcoin [BTC] was at -19.2%.

The meme sector was at -41.5%. Therefore, it isn’t simply that BONK was firmly bearish — the entire memecoin sector was.

Value expectations for BONK — Bears nonetheless in management

Supply: BONK/USDT on TradingView

Bonk was caught in an intense downtrend in latest months. After the swift features in November, the bulls have been unable to carry key assist ranges for lengthy. This noticed BONK fall under the November lows in early February.

At press time, BONK was one other 23% down and has retested the April 2024 assist. There was no assure that the value wouldn’t dip decrease. Merchants and buyers should count on the downtrend to proceed.

Highlighted by the white field was a good worth hole that prolonged to $0.0000155. Therefore, it was doable we might see a 15% worth bounce within the coming days earlier than the downtrend features traction as soon as extra.

Supply: Glassnode

The short-term holder web unrealized revenue/loss (STH NUPL) confirmed that short-term holders had been at an excessive loss. The NUPL worth was at -1.22 and had fallen to -1.35 on the twenty fourth of February.

The final time the NUPL was this low was again in April 2023. Subsequently, a worth bounce occurred, however we can’t declare causation right here.

Fairly, the inference was that the extraordinarily low NUPL doesn’t assure the tip of a downtrend.

In October 2023, Dogecoin [DOGE] rallied from $0.056 to $0.092 in December 2023. This coincided with a BONK rally of almost over 100x.

It was doable {that a} DOGE rally, alongside the remainder of the memecoin market, might come alongside a BONK restoration. Till circumstances change, merchants ought to count on bears to stay dominant.