Today’s Biggest Gainer: BONK Price Spikes Over 30% After 84B Token Burn Proposal

Key Takeaways

• 84 billion token burn proposal boosts BONK price by 30%.
• Trading volume surges 169%, reflecting renewed investor interest.
• Potential uptrend with RSI and MACD indicating bullish signals.

Bonk’s announcement that the treasury would burn 84 billion tokens sparked a 30% surge, positively shifting investor sentiment and market trends. After dipping slightly below $0.000020 on July 8, we saw an upturn, leading to a high of nearly $0.000027. 

Did the price react to this announcement, or did we see the start of a larger uptrend? 

BONK Token Burn Proposal 

The token burn announcement led to a significant price increase, with BONK rising to $0.00002391, a 10% gain from its low. Market capitalization also saw a boost, reaching $1,640,663,484. This move aims to reduce token supply, enhancing scarcity and value over time, marking a potential turning point for BONK.

Following the announcement, trading volume increased by 169% to $483,000,836, indicating renewed investor interest. The proposal, still pending final approval, has positively impacted the market.

In April, the BONK Decentralized Autonomous Organization (DAO) set a precedent by burning 278.39 trillion BONK, with 99.9% community approval. This demonstrated strong community trust and commitment to maintaining a healthy market ecosystem.

Previous token burns have positively influenced BONK’s price, and the current proposal is expected to do the same. If approved, BONK might challenge its all-time high of $0.00004704 reached in March despite currently being 49% below that level.

BONK Price Analysis 

On March 5, 2024, BONK achieved an all-time high of $0.00003771, marking a nearly 400% increase from its February low. However, this peak was short-lived, as the price plummeted by 75% to $0.000012 by April 13.

On May 29, BONK ended its uptrend at $0.000044 in a three-wave pattern. Subsequently, the price dropped to a low of $0.000020 on June 24, a 55% decline. A recovery occurred from the 0.786 Fibonacci level, prompting a slight price rebound.

The daily chart’s Relative Strength Index (RSI) fell to an oversold level of 32% on June 23 and has increased as the price rises. The Moving Average Convergence Divergence (MACD) indicator showed a positive cross on June 27, signaling the start of a potential uptrend.

If BONK’s price climbs to $0.000033 at the 0.382 Fibonacci level, it could complete the first sub-wave of a larger five-wave impulse. A significantly higher low in the following downturn could set BONK on a path to surpass its all-time high, potentially reaching $0.000060 by the end of the new bull phase.