The BONK cryptocurrency experienced a significant dip of over 12% early Tuesday as profit-taking pressures impacted the bullish sentiment. Initial price surges followed Bitcoin’s (BTC) breakout above $105,000 with the announcement of a U.S.-China trade deal. However, this momentum was tempered by market corrections impacting major altcoins. Bonk’s price dropped to lows of $0.0000209, mirroring the broader crypto market trend. 8 Other Solana-based meme coins also witnessed a significant decline. Notably, Bitcoin and Ethereum saw minor dips as they digested fresh U.S. inflation data. The CPI report led to a modest retreat in equities, with the Dow dipping and BTC stabilizing near $103,400. ETH also fell to around $2.4k. Meanwhile, Solana and XRP also experienced losses after recent gains. 2 Analysts at QCP Capital noted signs of capital rotation as Bitcoin’s dominance fell below 63%. This suggests potential shifts towards altcoins or other risk assets. Despite a temporary dip, Bonk’s volume surged to $1.1 billion in the past 24 hours. However, profit-taking activity led to a price decline, with its technical chart exhibiting a potential reversal with a rising wedge pattern. The memecoin is currently encountering resistance at key horizontal levels. Overall market conditions and the continued buzz around the Solana ecosystem will likely play a crucial role for Bonk’s future trajectory. The fact that it holds a prominent position as Solana’s first dog-themed coin makes its performance closely tied to trending memecoins like Dogecoin and Shiba Inu, which have also witnessed substantial growth. Data from SolScan shows Bonk is nearing 1 million holders. Moreover, Bonk reached its all-time high of $0.000059 in November 2024.