BONK Falls 22% in a Week After Institutional Sell-Off

Bonk has seen a steep drop in recent days. It’s down almost 22% over the past week and more than 5% in the past day, with the current price sitting near $0.00002554. While most major cryptocurrencies are trading in a narrow range, BONK’s decline stands out. A 19% rise in trading volume indicates that this isn’t a typical retail sell-off but likely a shift in positions by larger investors reacting to increased market risk.

Institutional Selling Accelerates Downward Pressure

On August 1, BONK experienced a sharp surge in sell volume, with over $59.77 billion tokens offloaded in just one hour. CoinMarketCap reported a 15.72% increase in daily volume, hitting $396 million in the same period. This may reflect a move by large investors to lower risk in a volatile market.

While the BONK development team has remained silent, the market reaction has been anything but calm. A wave of sell orders triggered cascading liquidations across several exchanges. Since meme coins are typically driven by community sentiment and hype, a large-scale exit by institutional players can quickly unravel their price structure.

The effect spread to other tokens as well. Solana-based meme coins such as Fartcoin, SPX, and PENGU suffered losses ranging from 3 to 7% in the same period. Experts note that this kind of broad weakness often coincides with increasing Bitcoin dominance and reduced risk appetite, especially in an environment of uncertain regulations.

Technically, BONK broke below an important support level at $0.000026, which had previously served as a foundation for price recoveries. Derivatives data revealed a 2.4% drop in open interest, falling to $37.74 million, suggesting that traders were exiting rather than taking advantage of the lower prices.

Technical Levels Signal Caution

From a technical standpoint, BONK is currently moving within a confirmed bearish channel. It has fallen below both the 30-day simple moving average at $0.00002919, and the MACD histogram has turned negative. At the same time, the RSI remains neutral around 46.62, indicating the market is neither overbought nor oversold, which makes the next price direction uncertain.

Notably, the $0.000026 level has flipped from support to resistance, forming a lower high that may suggest continued downside. If buyers fail to step in soon, the next important support sits near $0.00001928, aligned with the 78.6% Fibonacci retracement.

However, the situation is not entirely bearish. A daily close above $0.00002714 would invalidate much of the current downward trend. For the moment, trading volume remains low, which might reflect uncertainty or fatigue among market participants.

Meme Coin Sector Faces Broader Rotation

BONK currently holds a 64% share among Solana meme coins, making it a key indicator for the entire niche. When BONK weakens, other meme coins often follow in terms of price, liquidity, search trends, and social activity.

Recent data shows Bitcoin dominance rising to 60.8%. As a result, money is moving away from altcoins, especially volatile ones like BONK.

BONK’s upcoming 1 trillion token burn, expected once it reaches 1 million holders, might offer some support. However, without renewed demand, it is unlikely to reverse the current trend. A burn helps only when there is a broader interest in buying.

Meme coins tend to reflect investor risk appetite. When confidence falls, they are often the first to drop sharply. BONK’s recent weakness is part of a broader picture of fading interest and growing caution across the market.

BONK’s Outlook Remains Uncertain

The recent sell-off in BONK reflects a pattern seen across speculative assets. Tokens that capture institutional interest often experience fast reversals when market sentiment weakens. Falling below the $0.000026 mark has shifted the chart structure considerably, and near-term recovery appears unlikely.

That said, the outlook is not entirely negative. BONK still holds a strong position within the Solana ecosystem, supported by its engaged community and potential catalysts like the token burn. If it can hold the $0.00002390 support level through the week, there may be room for stabilization.