BONK Price Prediction: End-of-Correction Pattern Signals Rally to $0.00004

by

As a seasoned crypto investor with a background in technical analysis, I’m encouraged by the recent developments in BONK. The coin’s resilience during the market sell-off and its subsequent price rebound are indicative of strong buyer support. The potential token burn proposal from the treasury further bolsters my bullish outlook.

Based on recent market trends, the selling pressure in the cryptocurrency market has lessened since last weekend, allowing Bitcoin to hold steady above $55,000. This stabilization has given altcoins the opportunity to find support and recover, while quick-moving assets like meme coins have already started their recovery. The Bonk coin is a notable example, with its price bouncing back from $0.000018 to $0.000026 – a significant increase of 44%. However, it remains to be seen if this market correction has truly come to an end.

BONK Price Prediction: Bonk DAO Proposal to Burn 84 Billion BONK Tokens

BONK Price Prediction: End-of-Correction Pattern Signals Rally to $0.00004

BONK, a meme coin built on the Solana platform, has stood out among cryptocurrencies for its robustness during the early July market downturn. In the past three weeks, the coin’s price has bounced back twice from its support level at $0.000018, indicating that investors are actively purchasing at these dips.

As a researcher analyzing the daily price chart, I’ve noticed an intriguing development: this recent price uptick could be interpreted as the emergence of a double bottom pattern. Such a pattern is often seen as a bullish reversal, which increases my confidence in the potential formation of a bottom. Furthermore, if the price breaks above the resistance level associated with this pattern, it may present an enticing opportunity for entering a long position.

Currently, the value of BONK has risen by 8% to reach $0.0000261. Consequently, its market capitalization has grown to an impressive $1.78 billion. This upswing is most likely due to the recent announcement of a proposed substantial token burn from the treasury.

The DAO BONK is considering a proposition to eliminate approximately 84 billion BONK tokens from its treasury. These tokens correspond to the quarterly allocation of BONK received from BONKBot during Q2.

All BONK locked on BonkRewards is now able to vote on community proposals.

Voting:

— BONK DAO (@bonk_dao) July 8, 2024

The Bonk Decentralized Autonomous Organization (DAO) has put forward a proposition to eliminate around 84 billion BONK tokens from its reserve. This proposal aligns with the second quarter’s allocation of BONK sent to the DAO by BONKBot. If accepted, this token elimination would decrease the total circulating supply of BONK, which could in turn boost their value due to the scarcity effect.

During the ongoing price advancement, the coin is approaching the significant resistance level of around $0.000027 for its neckline in the bullish chart pattern. Should buyers manage to reverse this resistance and turn it into support, the bullish trend will gain strength.

The post-breakout rally could drive the asset to $0.000035, followed by $0.000045.

As a crypto investor, I’ve noticed that the recent upward trend in BONK’s price is driven by an ascending trendline on the daily chart. This supportive trend has been holding strong since February 2024, providing buyers with the confidence to keep driving up the price and maintain a consistent higher low formation.

Technical Indicator:

  • EMAs: The BONK price reclaimed the daily Exponential Moving Average (20, 50, 100, and 200) with recent price jumps, providing an early sign of trend reversal.
  • ADX: A steady downfall in the Average Directional Index slope indicates the prevailing bearish pressure is losing its momentum.

Read More

2024-07-09 15:54