Bonk Plunges 14% After Upbit Delists Trading Pair Amid Security Concerns
The memecoin sector has been relatively quiet in recent days, but one of its stars, Bonk ($BONK), experienced a sudden and steep decline. According to CoinMarketCap data, the top 10 memecoins by market cap have moved less than 3% over the past week.
However, Bonk was an exception, with its price falling 14% in just over 12 hours after South Korean exchange Upbit delisted its trading pair. The reason for the delisting was 'numerous shortcomings and a potential for user harm', citing security incidents that have weighed heavily on the public mind.
Coinalyze data showed an uptick in Open Interest during the trading sessions when Bonk prices were falling, which may indicate heightened speculative activity. The 1-day chart reinforced the bearish long-term outlook, with the swing structure having been bearish in recent months.
The loss of an important short-term support at $0.00000287 has likely spurred further sell pressure, and a new cluster of short liquidations has built up around $0.0000026. A drop toward $0.0000012, the 61.8% extension level, could occur in case Bitcoin faces a severe selloff.