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

After a serious value correction in early April, Solana-based meme coin BONK has been staging a powerful restoration not too long ago. During the last week, the BONK price has surged by over 25% and is at the moment buying and selling at $0.00002074 with a market cap of $1.35 billion.

What’s Behind the BONK Worth 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 enhance was largely fueled by a proposal suggesting a big treasury burn, totaling a large 280 billion tokens.

In response to a tweet, BONK DAO, the decentralized arm of Bonk, additionally obtained 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 via its revenue-sharing association with BONKBot since its inception in late 2023. BONKBot, Solana’s Telegram buying and selling bot, applies a 1% charge 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 optimistic transfer to stabilize the coin’s market and foster progress. Because 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 important technical gauge used to find out market traits and potential turning factors, the Bonk value is at the moment buying and selling at $0.000022. Merchants are additionally intently monitoring this stage to gauge the asset’s directional shifts.

Bonk encounters quick resistance at $0.000025, adopted by subsequent obstacles at $0.000027 and $0.000029. These ranges mark vital factors the place promoting stress could 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 Power Index (RSI) for Bonk at the moment stands at 78, indicating potential overbought situations. Conversely, the 50-day Exponential Shifting Common (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.