What’s Behind 25% BONK Price Rally, Key Levels to Watch

Bhushan Akolkar
April 22, 2024
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bonk

Highlights

  • The recent surge in the BONK price comes on the backdrop of a strong rally in meme coins.
  • The proposal to burn 280 billion BONK tokens has served as a catalyst to fuel the rally.
  • BONK faces resistance at various levels, with immediate barriers at $0.000025, $0.000027, and $0.000029.

After a major price correction in early April, Solana-based meme coin BONK has been staging a strong recovery recently. Over the last week, the BONK price has surged by over 25% and is currently trading at $0.00002074 with a market cap of $1.35 billion.

What’s Behind the BONK Price Rally?

Bonk (BONK), a token with a dog theme built on the Solana blockchain, saw a notable 25% surge amid a broader rally in meme coins. This increase was largely fueled by a proposal suggesting a significant treasury burn, totaling a massive 280 billion tokens.

According to a tweet, BONK DAO, the decentralized arm of Bonk, also received a proposal to burn 280 billion BONK from its Treasury. The proposal also suggests burning 278,393,137,215 BONK, equivalent to 100% of the BONK generated by BONK DAO through its revenue-sharing arrangement with BONKBot since its inception in late 2023. BONKBot, Solana’s Telegram trading bot, applies a 1% fee on all transactions, with 10% of the proceeds directed to the BONK DAO.

The proposal has garnered excitement from the Bonk community, seen as a positive move to stabilize the coin’s market and foster growth. As the proposal awaits approval, anticipation has contributed to a buying spree, driving Bonk’s price even higher.

Technical Indicators for BONK

The pivot point, a critical technical gauge used to determine market trends and potential turning points, the Bonk price is currently trading at $0.000022. Traders are also closely monitoring this level to gauge the asset’s directional shifts.

Bonk encounters immediate resistance at $0.000025, followed by subsequent barriers at $0.000027 and $0.000029. These levels mark significant points where selling pressure may escalate, potentially hindering further upward movement unless substantial buying activity occurs.

On the downside, the Bonk price finds initial support at $0.000018, with stronger support zones at $0.000015 and $0.000013.

The Relative Strength Index (RSI) for Bonk currently stands at 78, indicating potential overbought conditions. Conversely, the 50-day Exponential Moving Average (EMA) at $0.000017 supports a generally bullish trend over the longer term but aligns with the RSI’s suggestion of near-term overbought conditions.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.