Bonk, currently the second-largest meme coin on the Solana blockchain after Trump Coin, is showing signs of potential weakness. The token, which gained popularity among meme coin enthusiasts, is now facing selling pressure as large holders and experienced investors trim their positions. This shift in sentiment could trigger a deeper correction in Bonk’s price, especially as technical indicators align with the bearish outlook.
As of Wednesday, Bonk was trading at $0.00002053, marking a 20% decline from its monthly high of $0.00002577. Analysts point to a combination of on-chain data, exchange metrics, and technical patterns to argue that Bonk may be at risk of another downward leg.
Whales and Smart Money Trim Holdings
According to blockchain analytics platforms Nansen and Santiment, whales and smart money investors have been steadily offloading Bonk tokens. Smart money holdings have declined sharply from 33.4 billion in April to 15.6 billion currently, indicating a loss of confidence among sophisticated investors known for timing market tops and bottoms accurately.
Bonk whales chart | Source: Santiment
Whales—defined as holders of vast token quantities—have also reduced their exposure. Over the past 30 days, their holdings have fallen by 15%. Wallets with holdings between 1 million and 10 million Bonk tokens have offloaded roughly 500 million tokens since December. Meanwhile, those with between 10 million and 100 million now hold 1.44 trillion Bonk, a figure matched by wallets in the 100 million to 1 trillion range, suggesting large-scale redistribution or profit-taking.
This widespread reduction among influential holders often precedes broader market corrections and could signal an impending decline in retail confidence.
Exchange Balances Point to Bearish Sentiment
Another concerning indicator is the rise in Bonk’s exchange balances. Data reveals that exchange reserves have grown to 19.6 trillion tokens, up from a low of 19.4 trillion earlier this month. A surge in exchange balances is typically viewed as bearish, as it suggests investors are moving tokens from private wallets to exchanges, often in preparation for selling.
Bonk smart money movements | Source: Nansen
When combined with the exodus of whales and smart money, this shift further reinforces the possibility of a market-wide pullback.
Technical Patterns Support Bearish Outlook
From a technical analysis standpoint, Bonk’s price chart adds to the bearish narrative. After peaking at $0.00002577 earlier this month, the token formed a classic double-top pattern—a reversal formation that often marks a local high. It subsequently fell to $0.00001815, aligning with an ascending trendline that has supported prices since April 7.
Bonk price chart | Source: crypto.news
More recently, Bonk has entered a bearish pennant formation. This structure, defined by a steep drop followed by a tightening symmetrical triangle, often precedes further declines. With the two trendlines approaching convergence, a breakdown seems imminent.
Should Bonk break below the $0.00001815 support, the next potential target lies at $0.00001730, which corresponds to the 50% Fibonacci retracement level of the recent rally. A breach of that zone could accelerate the downtrend.
