BONK Price Prediction: End-of-Correction Pattern Signals Rally to $0.00004

BONK Price Prediction: Since last weekend, the selling pressure in the cryptocurrency market has eased as the Bitcoin price found stability above $55000. The absence of aggressive sellers has bolstered altcoins to find suitable support, while fast-moving assets like meme coins are already in recovery mode. The phenomena displayed in the Bonk coin as its price rebounded from $0.000018 to $0.000026, registering a 44% jump. Has the correction trend ended?

Also Read: Bitcoin Drops As German Govt Offloads Over 5K BTC, Still Holds $1.85B

BONK Price Prediction: Bonk DAO Proposal to Burn 84 Billion BONK Tokens

The Solana-based Meme coin BONK emerged among the few cryptocurrencies that showed strong resilience against the early July sell-off. Within the last three weeks, the coin price rebounded twice from $0.000018 horizontal support, projecting that buyers are actively buying this dip.

A look at the daily chart shows this upswing as the formation of a double bottom pattern. The bullish reversal provides a higher conviction for bottom formation and also a breakout opportunity.

Today, BONK’s price has surged by 8% to trade at $0.0000261, while the market cap jumped to $1.78 Billion. This rise is likely driven by the announcement of a proposed significant token burn by the treasury.

BONK DAO has received a proposal to BURN ~84B BONK from its Treasury representing the Q2 amount of BONK sent to the DAO from BONKBot.

All BONK locked on BonkRewards is now able to vote on community proposals.

Voting:https://t.co/akvJAfpCcM

— BONK DAO (@bonk_dao) July 8, 2024

Bonk DAO has received a proposal to burn approximately 84 billion BONK tokens from its treasury. This proposal corresponds to the Q2 amount of BONK sent to the DAO from BONKBot. If approved, this burn would reduce the overall supply of BONK tokens, potentially increasing their value due to the scarcity principle.

Amid the development, the coin price is close to breaching the $0.000027 neckline resistance of the above bullish pattern. The bullish momentum will accelerate if the buyers successfully flip the overhead resistance into potential support.

The post-breakout rally could drive the asset to $0.000035, followed by $0.000045.

Moreover, the current uptrend in BONK price is governed by an ascending trendline in the daily chart. Since February 2024, this dynamic support bolsters buyers to maintain a steady higher low formation.

Technical Indicator:

• EMAs: The BONK price reclaimed the daily Exponential Moving Average (20, 50, 100, and 200) with recent price jumps, providing an early sign of trend reversal.
• ADX: A steady downfall in the Average Directional Index slope indicates the prevailing bearish pressure is losing its momentum.