Bonk (BONK) Price Prediction: BONK/USD Down 30% Despite Massive Token Burns

Despite massive token burns, Bonk BONK/USD is down 30% over the past week. Trader Notes: Crypto trader Nebraskangooner notes that Bonk's chart forming a

Despite massive token burns, Bonk (BONK) is down 30% over the past week. However, some traders remain bullish on the meme coin, pointing to technical indicators and the early stage of the project.

Key Takeaways

* Bonk (BONK) has seen a massive sell-off, with the token dropping 30% over the past week.

* Despite the sell-off, some traders are still bullish on Bonk, noting that the token has seen deep corrections before hitting new highs.

* One trader points out that his unrealized profit on Bonk still stands at $7 million, despite the recent sell-off.

* Bonk's team has burned 2.03 trillion BONK in celebration of the BONKdragon event and Lunar New Year.

After a phenomenal surge that saw Bonk (BONK) become the top meme coin of 2023, the token has faced a significant sell-off, dropping 30% over the past week. However, despite the sell-off, some traders remain bullish on Bonk.

Crypto trader Nebraskangooner notes that Bonk's chart is forming a "squiggly line" pattern, which he believes is a good sign.

“Bonk 15m forming a squiggly line, usually how it looks before a pump.”

Chart showing Bonk (BONK) 15m candle. Source: TradingView

Meanwhile, analyst Ali Martinez has spotted a buy signal on the daily chart.

“$BONK daily closed above the fib golden pocket & formed a morning star candle, indicating a potential buy signal. A morning star candle is typically bullish & signals a potential price recovery.”

Chart showing Bonk (BONK) daily candle. Source: TradingProminent trader Unipcs is also bullish on Bonk, calling the current shakeout a filter for weak hands before the next rally.

“Bonk 1h nuked again. Still early for top meme coin of this cycle. Shaking out weak hands before next leg.”

Chart showing Bonk (BONK) 1h candle. Source: TradingView

Unipcs points out that Bonk has seen deep corrections before hitting new highs and adds that despite the sell-off, his unrealized profit on Bonk still stands at $7 million.

“Bonk 1h nuked again. Still early for top meme coin of this cycle. Shaking out weak hands before next leg. I personally sold half at 0.0003 and still have 7m unrealized.”

Chart showing Bonk (BONK) 1h candle. Source: TradingView

Bonk's team has burned 2.03 trillion BONK in celebration of the BONKdragon event and Lunar New Year. The burn was announced on February 1 and is part of the community's efforts to reduce the circulating supply and increase the token's scarcity.

“In honor of BONKdragon and Lunar New Year, the community burned 2.03 trillion BONK.”

The burning of tokens is a common practice among meme coin communities and is typically done to create scarcity, which can lead to an increase in the token's value.