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Solana’s BONK crashes 50% in 24 hours, is it time to exit?

This in Solana resident BONK has been all the rage since the beginning of the new year. The meme coin had risen from obscurity to become the largest meme coin on the Solana ecosystem in less than two weeks, and in that time saw massive gains for investors. However, the hype seems to have peaked and BONK has initiated the dreaded downward correction.

BONK falls 50% in 24 hours

On the last day, the price of BONK has declined rapidly, losing more than 50% of its value in that time. It peaked on Thursday when the hype was at its peak all-time high from $0.0000049 but has since fallen to $0.000002.

This came after seeing a response rate of more than 4,000% within 10 days and a market capitalization reached over US$200 million. However, like meme coins, such gains become impossible to hold without real benefit and eventually the sell-offs dragged its price back down. Being a digital currency driven by purely social sentiments, this was expected, just like its predecessors like Dogecoin and Shiba Inu.

This drop in price has also caused the price increase recorded in Solana over the last week to slow down significantly. However, while BONK posted over 53% losses over the past day, SOL posted small gains of 0.17%.

Solana’s BONK crashes 50% in 24 hours, is it time to exit?, Crypto Trading News

Solana’s BONK crashes 50% in 24 hours, is it time to exit?, Crypto Trading News

BONK drops over 50% in 24 hours | Source: BONKUSDT on TradingView.com

Is it time to sell the tokens?

With a downturn like this, BONK could see the beginning of the end just like Shiba Inu did in October 2021. Therefore, it might be wise to get out now cryptocurrency to get out if the losses should continue for the next couple of days. But it’s also important to consider the growth of the meme coins, as well as the attention it’s receiving in the market.

For example, BONK remains one of the most visited pages on Coinmarketcap. It’s second only to RichQUACK, another meme coin that hasn’t done well over the past week. This shows that the cryptocurrency still has a lot of eyes, which could give it a boost.

Another key tidbit is that BONK transactions have reportedly surpassed those of Ethereum in the last three days according to data from Dune Analytics. Well, that’s just the peak of the hype and doesn’t mean the meme coin would be able to sustain such levels, but is still important to note.

Solana’s BONK crashes 50% in 24 hours, is it time to exit?, Crypto Trading News

Transactions outperform Ethereum | Source: Twitter

However, it’s important to remember that if a digital asset falls 50%, it would need to surge 100% to regain its previous price, which can be a tough task for a meme coin. Finally, investors should keep in mind that meme coins are more volatile than the average large-cap cryptocurrency.

Follow Best Owie on Twitter for market insights, updates and the occasional fun tweet… Featured image by CryptoPotato, chart by TradingView.com

Source: Crypto News Deutsch

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