BONK Meme Coin Price Skyrockets Again: What’s Next?

Solana meme coin BONK has seen a staggering 75% increase in its price over the past week as of 25th April 2024, reversing the declining trend and breaking through notable resistance levels. This surge signals strong bullish momentum for the cryptocurrency, potentially promising further gains in the near future.

The surge in BONK’s value can be attributed to market conditions and developments within the project. Can the buying pressure continue to push the price upwards, or will BONK face correction?

BONK News Are Optimistic

One key factor driving the recent rally is the Bonk DAO’s recent decision to burn 278,393,137,215 BONK tokens on April 24th, 2024. This amount represents the entire amount of tokens earned by the DAO through its revenue-sharing agreement with BONKBot since its launch in late 2023.

The decision reduces the circulating supply of BONK and increases confidence in the project among its community. As a result, demand for the meme token has increased, causing a spike in buying pressure and ultimately driving up the price.

According to the CoinMarketCap data, BONK is currently trading at $0.00002522, witnessing an impressive growth of more than 75% over the seven days and holding the #60th place in market capitalization.

Recovering the Losses

It’s worth noting that BONK’s price surge also coincides with a recent jump in Bitcoin’s value. The token had seen a steady decline in price for two months after reaching an all-time high of $0.000048 on March 4th, 2024. The coin dropped below $0.000024 a week ago as investors locked in profits.

This decline can be attributed to a variety of factors, including the overall market sentiment and Bitcoin’s price volatility. In particular, Bitcoin’s drop just a week before its halving event on geopolitical tensions in the Middle East significantly impacted the token’s price.

However, with the halving event now over and BTC regaining some of its positions, meme coins like Solana-based BONK are on the rise again. Bitcoin’s price climbed from $60,000 to $64,000-$65,000, bringing other altcoins up. Investors seem to be taking advantage of this surge, actively buying the dips and contributing to the overall positive sentiment for the meme coin.

Market Analysis of BONK

As BONK’s price continues to rise, short positions worth over $2 million were liquidated in the last several days, according to Coinglass. This indicates that many traders who had bet against BONK’s value are now closing their positions, potentially adding to the buying pressure and further driving its price.

Moreover, the Funding rate of BONK, which remained negative for almost the entire previous month, has recently shifted to positive. Positive rates hint at long contracts dominating the Futures market, while negative rates imply that short contracts are more dominant.

Bonk Meme Coin Price Prediction

The price of Bonk has demonstrated remarkable growth, positioning itself to break through critical resistance levels. The token has successfully bounced from the support level of $0.000012-$0.000014 and broken above the descending resistance trend; however, the sellers are still actively suppressing the upside movement.

On the 24th of April, 2024, the price bounced from significant resistance at the $0.00003 level, a crucial point for bears to maintain their market control. Overcoming this threshold could signal the end of their bear dominance, potentially propelling the price towards $0.00004 and perhaps even higher.

Conversely, if the price falls significantly and will not maintain on the $0.00003 support, it would mean the end of bullish movement, driving the price down to $0.00002 and possibly further to $0.000013. 

However, indicators like MACD seem to point in a positive direction. The daily RSI stands at 59, indicating a balance between buyers and sellers and suggesting some room for growth.

Meme Coin Bull Run: Should I Buy BONK?

The recent surge in BONK’s value has attracted the attention of many investors, leading to the question: is BONK a good buy? While there are no guarantees in the volatile world of cryptocurrency, several factors suggest that BONK is worth HODLing.

Technical analysis indicates bullish signals from moving averages and select oscillators. The token has broken above its descending resistance trend, and moving averages show positive signs. Additionally, the MACD indicator suggests potential for continued upward movement. 

Moreover, the overall sentiment towards meme coins has improved in recent weeks, with a broader recovery expected across the cryptocurrency sector following Bitcoin’s halving, which could further support BONK’s price growth.

However, investors should remain vigilant, as markets are unpredictable, and there is always a chance of correction or adverse news impacting the price of cryptocurrencies.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies, including meme coins, carries ingrained risks, and individuals should conduct their own research before making any investment decisions.