What’s Behind 25% BONK Price Rally, Key Levels to Watch

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In early April, after experiencing a significant drop in price, Solana’s meme coin BONK has been making a robust comeback. Within the past week, the BONK price has jumped by more than 25%, reaching a current value of $0.00002074 and boasting a market capitalization of $1.35 billion.

What’s Behind the BONK Price Rally?

A canine-themed token named Bonk (BONK), which operates on the Solana blockchain, experienced a substantial 25% growth during a wider upswing in meme coins. The primary cause of this rise was a proposal advocating for a major treasury reduction, amounting to an impressive 280 billion tokens.

A tweet mentioned that BONK DAO, the decentralized wing of Bonk, received a proposal to eliminate 280 billion BONK from its Treasury. The proposition additionally suggested eliminating 278,393,137,215 BONK, which equals 100% of the BONK produced by BONK DAO via its revenue-sharing deal with BONKBot since its establishment at the end of 2023. BONKBot, a Telegram trading bot on Solana, collects a 1% fee on all transactions; 10% of these fees are funneled to BONK DAO.

The Bonk community is looking forward to the proposal with enthusiasm, believing it will help steady the coin’s market and encourage development. As the proposal goes through the approval process, this anticipation has led to a surge in buying activity, further boosting Bonk’s value.

Technical Indicators for BONK

A significant technical marker, the Bonk price, presently hovers around $0.000022. This benchmark, crucial for identifying market trends and possible reversals, is under close scrutiny by traders as they assess the asset’s future movement.

At $0.000025, Bonk hits a wall with strong selling pressure. Further obstacles appear at $0.000027 and $0.000029. These levels could signal increased resistance to price growth, possibly halting advancement unless substantial buying power overcomes the sellers.

The price of Bonk has some weaknesses. It first finds a bottom at $0.000018, but more solid supports can be found at $0.000015 and $0.000013.

In simpler terms, the RSI value of 78 for Bonk suggests that the price may be overbought and could potentially decrease. However, the 50-day EMA at $0.000017 generally points to an uptrend in the long term, but it agrees with the RSI’s indication of short-term overbought conditions.

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2024-04-22 13:46