BONK (BONK) Price Prediction: Is a Rebound to ATH Imminent?

Following the token burn event, BONK coin's recent price action bounced from the 100-day EMA mark. After hitting an ATH of $0.00005916, the BONK crypto has been in a retracement phase and has corrected more than 44% in a month.

Solana (SOL)-based meme token, BONK, has seen a surge in buying interest following a massive token burn. According to data from CoinGecko, over 1.69 Trillion BONK tokens, or 9% of the total supply, were burned on February 21st. This burn, which was approved by 99% of the community, aimed to reduce the circulating supply of the token.

The burning of a large portion of the BONK tokens had a significant impact on the market. As a result of this event, the price of the BONK coin rose by more than 5% intraday, reaching $0.00003325 at the time of writing. This recent price increase follows a prolonged downtrend, which saw the meme token lose over 44% in the past month.

Moreover, the market capitalization of BONK also rose to $2.52 Billion, ranking 52nd among the top crypto coins. This recent surge in buying interest and market engagement could bode well for the future performance of the BONK coin.

A Look at the Token Burn

To increase the token’s value, BONK DAO burned 1.69 Trillion tokens, decreasing the total supply to 91 Trillion. This burn, approved by 99% of the community and completed in a single Solana transaction, was to mark the second anniversary of the BONK crypto.

Following the burn, the DAO still holds 9% of the total supply, making it the largest single entity on the chain, even surpassing Binance’s BONK holdings. Additionally, the BONK staking pool holds another 4.8% of the token’s total circulation.

BONK Price Prediction: Is a Rebound to ATH Imminent?

Following the token burn event, BONK coin’s recent price action bounced from the 100-day EMA mark. After hitting an ATH of $0.00005916, the BONK crypto has been in a retracement phase, correcting over 44% in a month.

Over the past week, the BONK price surged more than 30% and retained buying interest. Fueled by a substantial volume surge, it replicated signs of completing the profit booking phase. Moreover, a fresh rally toward ATH highs could be seen in the coming sessions.

Technical indicators on the 4-hour chart show the Relative Strength Index (RSI) line recouped from the oversold region and headed toward the 50 threshold level, indicating a bullish crossover. This suggests that buyers have regained traction in the market.

Furthermore, the On-Balance-Volume (OBV) remained high, indicating sustained buying pressure and boosting BONK’s bullish outlook as traders continue to step in for a reversal trade.

The recent token burn event also boosted social engagement and shifted participant sentiment. This bodes well for the BONK coin, which could rally to its ATH soon.

BONK bulls take the lead: Potential Uptrend Continuation?

The Open Interest (OI) has risen over 2.84% to $10.88 Million over the past 24 hours. A rise in Open Interest and volume typically indicates growing market activity and interest in BONK.

Data from Coinglass showed a shift in market sentiment. Following a 5% rally intraday, 51.48% of the positions on BONK are now long. At the same time, shorts have decreased to 48.52%, suggesting a potential trend reversal.

Overall, the increasing buyer interest, social engagement, and fresh long positions could propel the BONK price higher. The immediate support zones for the BONK coin are $0.00003300 and $0.00003120. On the other hand, the resistance zones are $0.00003540 and $0.00003700.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.