BONK Price Eyes Major Breakout Ahead as Meme Coin Sector Heats Up

Amid the broader crypto market recovery, the meme coin sector seems to be in the limelight once again. After a massive sell-off in the first week of July

Solana-based meme coin BONK has registered a staggering 44% gain in the past week, surging from $0.000018 to $0.0000261,気になる話題. However, at press time, the BONK price is trading 0.95% down at $0.00002643 with a market cap of $1.82 billion.

Despite the broader market correction, BONK price has shown impressive resilience, bouncing back twice from the support level of $0.000018 in the last three weeks. This buying pressure has formed a “double bottom” pattern on the daily technical chart, a historical indicator suggesting potential trend reversal and breakout going ahead, as noted in the CNF update.

Recently, a proposal has emerged to burn a substantial portion of BONK tokens, which could further propel investor interest. This proposed burn would impact around 84 billion tokens that were sent to the Bonk DAO treasury in Q2. Notably, this burn could significantly reduce the overall supply of the meme coin.

Considering the principles of supply and demand, this scarcity could theoretically augment 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.

Voting:

https://t.co/akvJAfpCcM

— BONK DAO (@bonk_dao) July 8, 2024

BONK Price Eyes Major Breakout Ahead

BONK is gearing up for a potential breakout as its price approaches the critical $0.000027 resistance level, which marks the neckline of the prominent double-bottom pattern. A successful breach of this level will transform it into a strong support zone, setting the stage for further upward price movement.

After breaking out of this resistance, market analysts anticipate a rally that could drive BONK towards targets of $0.000035 and potentially $0.000045. Moreover, a close observation of the daily chart reveals a consistent ascending trendline, which has been observed since February 2024, indicating sustained bullish momentum.

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

While BONK has shown impressive gains, it's crucial to note the inherent volatility in the cryptocurrency market, especially for meme coins, which are known to experience drastic fluctuations. Despite this, BONK's positive technical indicators and the proposed token burn offer a cautiously optimistic outlook.

Recently, BONK, a notable dog-themed meme coin on the Solana blockchain, has made several significant partnerships. As reported by Crypto News Flash, the platform has collaborated with Octo Gaming, a gaming ecosystem that aims to enhance gaming experiences, and Paris Musketeers, a French-American professional football team.