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

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.