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

Last Updated July 9, 2024 3:56 PM
Nikola Lazic
Last Updated July 9, 2024 3:56 PM

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.

BONK
BONKUSD | Credit: Nikola Lazic/Tradingview

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.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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