BONK Token Surges 44%: Can Meme Coins Defy Gravity with Proposed Burn?

BONK, a Solana-based meme coin, has seen a 44% gain over the past week. This article examines the factors behind its rise and the potential for further gains through a proposed token burn.

Points

• BONK gains 44% over the past week, driven by strong technical indicators.
• Proposed token burn could significantly reduce supply and boost value.
• Analysts predict potential rally targets of $0.000035 and $0.000045.
• BONK’s recent price surge reinstates its position above key EMAs.

Over the past week, BONK, a meme coin based on the Solana blockchain, has experienced a staggering 44% gain, with its price rising from $0.000018 to $0.0000261. As of press time, BONK is trading 0.95% down at $0.00002643, with a market cap of $1.82 billion.

Investor interest has been further ignited by a recent proposal to burn a significant portion of BONK tokens. This proposed burn, which would affect approximately 84 billion tokens sent to the Bonk DAO treasury in Q2, could significantly reduce the overall supply of BONK. According to the principles of supply and demand, this scarcity could theoretically increase the value of the remaining tokens.

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.

https://twitter.com/bonk_dao/status/1810365995288244383

BONK Price Eyes Major Breakout Ahead

BONK is preparing for a potential breakout as its price approaches the critical $0.000027 resistance level, marking the neckline of a prominent double-bottom pattern. A successful breach of this level could transform it into a strong support zone, paving the way for further upward momentum.

Market analysts anticipate a rally post-breakout that could propel BONK towards targets of $0.000035 and possibly $0.000045. Furthermore, a consistent ascending trendline observed on the daily chart since February 2024 indicates sustained bullish momentum.

In recent trading sessions, BONK’s robust price surge has reinstated its position above key Exponential Moving Averages （EMAs） – specifically the 20, 50, 100, and 200-day EMAs. This development also signals an early indication of a potential reversal in trend from bearish to bullish.

Despite BONK’s recent surge, the future remains uncertain in the volatile cryptocurrency market, where meme coins are particularly prone to drastic fluctuations. Yet, BONK’s positive technical indicators and the proposed token burn offer a cautiously optimistic outlook.