After a serious value correction in early April, Solana-based meme coin BONK has been staging a robust restoration just lately. Over the final week, the BONK price has surged by over 25% and is at present buying and selling at $0.00002074 with a market cap of $1.35 billion.
What’s Behind the BONK Price Rally?
Bonk (BONK), a token with a canine theme constructed on the Solana blockchain, noticed a notable 25% surge amid a broader rally in meme cash. This improve was largely fueled by a proposal suggesting a big treasury burn, totaling a large 280 billion tokens.
According to a tweet, BONK DAO, the decentralized arm of Bonk, additionally acquired a proposal to burn 280 billion BONK from its Treasury. The proposal additionally suggests burning 278,393,137,215 BONK, equal to 100% of the BONK generated by BONK DAO by way of its revenue-sharing association with BONKBot since its inception in late 2023. BONKBot, Solana’s Telegram buying and selling bot, applies a 1% price on all transactions, with 10% of the proceeds directed to the BONK DAO.
The proposal has garnered pleasure from the Bonk group, seen as a constructive transfer to stabilize the coin’s market and foster development. As the proposal awaits approval, anticipation has contributed to a shopping for spree, driving Bonk’s value even larger.
Technical Indicators for BONK
The pivot level, a vital technical gauge used to decide market tendencies and potential turning factors, the Bonk value is at present buying and selling at $0.000022. Traders are additionally carefully monitoring this degree to gauge the asset’s directional shifts.
Bonk encounters speedy resistance at $0.000025, adopted by subsequent limitations at $0.000027 and $0.000029. These ranges mark important factors the place promoting strain might escalate, probably hindering additional upward motion until substantial shopping for exercise happens.
On the draw back, the Bonk value finds preliminary help at $0.000018, with stronger help zones at $0.000015 and $0.000013.
The Relative Strength Index (RSI) for Bonk at present stands at 78, indicating potential overbought situations. Conversely, the 50-day Exponential Moving Average (EMA) at $0.000017 helps a usually bullish pattern over the long run however aligns with the RSI’s suggestion of near-term overbought situations.
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