BONK, the Solana-based meme coin, has suffered a sharp decline of more than 19% this week, underperforming the broader cryptocurrency market. The selloff intensified after on-chain data revealed that the hacker responsible for a recent exploit moved a portion of the stolen tokens to Binance, fueling concerns of further liquidation.
According to blockchain analytics firm Lookonchain, the attacker deposited approximately 1.19 trillion BONK tokens—worth about $4.11 million—into Binance over a six-hour period on Friday. The transfer suggests the hacker may be preparing to sell the tokens, adding downward pressure on the already beleaguered asset.
Since the exploit on July 6, BONK has lost more than 26% of its value. The hacker still holds roughly 3.2 trillion BONK, valued at around $10.85 million, according to Lookonchain. This remaining stash continues to hang over the market, as any additional deposits to exchanges could trigger renewed selling and heightened volatility.
Technical Outlook Points to Further Downside
The BONK/USD 4-hour chart remains deeply bearish. The token was rejected at its 50-day exponential moving average (EMA) near $0.0000045 on July 6 and has since trended lower. At press time, BONK is trading at $0.00000326, with bears firmly in control.
Key support lies at the psychological level of $0.0000030. A break below that could open the door to deeper losses. The Relative Strength Index (RSI) has fallen to around 30, placing BONK near oversold territory. While this signals strong bearish momentum, it may also indicate that selling pressure is becoming exhausted if buyers step in.
The Moving Average Convergence Divergence (MACD) remains in bearish territory, with a negative crossover and expanding red histogram bars, reinforcing the current downtrend. On the upside, the first major resistance is the 50-day EMA at $0.0000045. A sustained move above that level would improve the short-term technical outlook.
Broader Market Context
The broader cryptocurrency market is also under pressure, adding to BONK's woes. Similar bearish sentiment has affected other assets, as seen in recent declines in major indices and stocks. For instance, the Nikkei 225 plunged 2.8% amid a chip rout, while Rocket Lab stock tumbled 55% on technical signals. These moves reflect a risk-off environment that has weighed on speculative assets like meme coins.
Until the hacker's remaining BONK holdings are accounted for, traders are likely to remain cautious about initiating new bullish positions. The market remains vulnerable to further downside, with the potential for additional exchange deposits keeping sentiment fragile.
This article is for informational purposes only and does not constitute financial advice.
