Bonk Inu (BONK) Price Prediction: TD Sequential Indicator Flashes Buy Signal, Token Burn Strengthens Bullish Outlook

Bonk Inu (BONK) may be gearing up for a price recovery as the TD Sequential indicator signals a potential buying opportunity.

Bonk Inu (BONK) might be preparing for a recovery as the TD Sequential indicator signals a possible buying opportunity.

Crypto analyst Ali Martinez highlights that the daily chart has flashed a buy signal, indicating a possible reversal. This aligns with the formation of a morning star pattern, which often precedes a bullish trend reversal.

The coin’s immediate target sits at the S1 pivot of $0.000028, while the psychological barrier of $0.000020 could act as strong resistance. If these levels break, renewed buying interest might drive short-term gains.

BONK’s Token Burn Strengthens Bullish Outlook

Another major development supporting BONK’s potential recovery is the announcement of a large-scale token burn. The official Bonk Inu account recently confirmed that 2.025 trillion tokens will be burned throughout 2025. This burn coincides with the memecoin’s Dragon event and the upcoming Lunar New Year celebrations.

Additionally, the coin will undergo further burns upon the completion of BIP No. 75 voting via the Realms program. A reduction in circulating supply could fuel buying pressure, improving the memecoin’s price stability and long-term outlook.

Technical Indicators Suggest a Possible Reversal

BONK/USD daily price chart, Source: Trading view

Technical analysis presents a mixed outlook for the memecoin. The Relative Strength Index (RSI) currently sits at 28.18, indicating an oversold condition. This suggests that the memecoin might be nearing a consolidation phase or a rebound.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains in bearish territory, with the MACD line below the signal line. However, a crossover near the zero line could signal a shift in momentum, potentially driving a price recovery.