Bonk is among the altcoins that saw a significant price dip early Tuesday as profit taking dented bulls’ momentum.

The Bonk (BONK) crypto had jumped to highs of $0.0000256 as Bitcoin (BTC) broke to above $105k amid a U.S.-China trade deal announcement. But the flagship digital asset pared some of the gains and major altcoins followed suit.

Bonk price slipped to lows of $0.0000209, with the Solana memecoin plummeting by more than 12%. The action mirrored other trending Solana meme coins and the broader crypto market. Notably, Bitcoin hovered near $103,400, having broken down from above $105k.

Bitcoin and Ethereum also dipped slightly as markets digested fresh U.S. inflation data. The CPI report triggered a modest retreat in equities, with the Dow slipping and BTC stabilizing near $103k. ETH fell toward the $2.4k region. Solana and XRP also gave back some of their recent gains.

Analysts at QCP Capital noted signs of capital rotation, with BTC dominance falling below 63%, indicating potential shifts toward altcoins or other risk assets.

The broader market trend saw the memecoin record a surge in volume, up to $1.1 billion. However, as traders sought to take profits, BONK price fell, with its technical picture suggesting a potential reversal with a rising wedge pattern.

Despite the short-term bearish setup, BONK appears to be looking for a bounce. In the past 24 hours, the memecoin touched highs of $0.0000228, though it has since pulled back from a key horizontal resistance zone.

Overall market conditions and Solana ecosystem buzz will nonetheless be key in terms of tailwinds for Bonk.The latter is noteworthy as Bonk is Solana’s first dog-themed coin and has seen growth alongside top memecoins Dogecoin and Shiba Inu.

Data from SolScan shows Bonk’s user base is nearing 1 million holders. Meanwhile, BONK price reached its all-time high of $0.000059 in November 2024.