Bonk (BONK), the Solana-based meme coin, is flashing bullish signals amid a recent price correction. Analysts highlight a potential rebound driven by sequential TD buy signals, a massive token burn event, and oversold technical indicators.
Key Takeaways
- TD Sequential buy signals hint at a trend reversal for BONK.
- 2.025 trillion BONK token burn may reduce supply and boost prices.
- RSI near 30 suggests the coin is oversold, with a bullish rebound likely.
Technical Analysis: Bullish Patterns Emerge
Crypto analyst Ali Martinez identified a bullish setup on BONK’s daily chart, supported by the TD Sequential indicator—a tool used to predict trend reversals. The recent "morning star" pattern further reinforces the potential for an upward price movement.
Price Targets:
- Initial target: $0.000028 (S1 pivot level).
- Key resistance: $0.000020 (psychological barrier).
👉 Explore Solana meme coins for similar high-potential assets.
Token Burn Event: A Supply Squeeze Catalyst
The BONK team announced plans to burn 2.025 trillion tokens (worth ~$35 million) to celebrate the Lunar New Year 2025 and the BONK Dragon event. This reduction in circulating supply could:
- Increase scarcity-driven demand.
- Historically trigger price rallies (e.g., Binance’s BNB burns).
Market Performance Snapshot
| Metric | Value | Change (24h) |
|---|---|---|
| Price | $0.00001756 | +4.90% |
| Market Cap | $1.36 billion | -30.21% (7d) |
| Trading Volume | $144.85 million | N/A |
Derivative Sentiment
- Open interest: ↑5.61% ($10.08M).
- RSI: 30 (oversold territory).
- MACD: Bearish but weakening momentum.
FAQ: Quick Insights
Q: Why is BONK considered oversold?
A: Its RSI nears 30—a level where assets often rebound due to excessive selling pressure.
Q: How does the token burn affect BONK’s price?
A: Reducing supply can create upward pressure if demand remains steady.
Q: What’s the next resistance level for BONK?
A: $0.000020, a critical psychological benchmark.
👉 Dive into meme coin trends for more opportunities.
Disclaimer: This content is for educational purposes only and not financial advice. Always conduct independent research before investing.
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