Bonk (BONK), the second-biggest Solana meme coin after Trump Coin, may be at risk of a significant drop

Bonk (BONK) was trading at $0.00002053 on Wednesday, down 20% from its monthly high.

Bonk (BONK) may be headed for a significant drop as whales and smart money investors are seen reducing their positions, threatening the meme coin with further losses.

Bonk, the second-biggest Solana meme coin after Trump Coin, rose to a high of $0.00002577 earlier this month before buyers began to tire.

The token was trading at $0.00002053 by 13:36 ET (17:36 GMT) on Wednesday, down 20% from the monthly high.

Here’s a breakdown of the latest data and technical analysis on Bonk.

What happened?

Data from blockchain analytics firm Nansen and on-chain intelligence platform Santiment shows that both smart money investors and whales have been trimming their Bonk holdings, in what could be a signal of an impending price reversal.

Holders with 1 million to 10 million coins have offloaded 500 million tokens since December, according to Nansen.

Meanwhile, wallets with 10 million to 100 million coins now hold 1.44 trillion tokens, while those with 100 million to 1 trillion coins have also reduced their holdings to 1.44 trillion.

Nansen, which defines smart money investors as users who have a consistent history of spotting bullish and bearish trends early, adds that whale holdings have dropped 15% over the past 30 days.

Earlier this year, smart money investors’ tokens dropped to 15.6 billion from April’s 33.4 billion, data shows.

The latest figures also show that Bonk exchange balances rose to 19.6 trillion tokens, up from this month’s low of 19.4 trillion. Rising exchange balances are often seen as bearish, as they typically suggest increased selling pressure from investors.

Bonk price technical analysis

The four-hour chart shows that Bonk peaked at $0.00002577 this month before forming a double-top pattern. The token then dropped to a low of $0.00001815, which coincided with an ascending trendline connecting the lowest swings since April 7.

From there, Bonk has formed a bearish pennant pattern, made up of a sharp downward move followed by a symmetrical triangle. The two trendlines of this pattern are now converging, and this could lead to a bearish breakdown.

The initial target for this move is $0.00001815, the lowest swing this month. A break below that level would likely open the door for further downside, potentially toward the 50% Fibonacci retracement level at $0.00001730.

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