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- A massive token burn of 1.69 Trillion BONK was completed.
- BONK price rallied more than 5% as buying momentum strengthened.
Bonk (BONK), a Solana-based meme token, has gained significant buying interest as a massive token burn. BONK coin’s overall supply decreased by 1.8% as $54.52 Million worth of tokens were burned. This could have a significant impact on the market.
Amidst the token burn event, the BONK coin price surged over 5% intraday, trading at $0.00003325. Its market cap rose to $2.52 Billion, ranking 52nd among the top crypto coins.
A Look at the Token Burn
To increase the token’s value, BONK DAO made a token burn of 1.69 Trillion tokens, hence lowering the supply to 91 Trillion. This burn worth over $52 Million was approved by 99% of the community, and it was done in a single Solana transaction.
It was to mark the second anniversary of the BONK crypto and aimed to increase the token’s scarcity in circulation. Following the burn, the BONK DAO wallet still holds 9% of the total supply and remains the most significant single entity of the chain.
The DAO wallet even surpasses the BONK holdings on Binance. The BONK staking pool also holds another 4.8% of the token’s total circulation.
BONK Price Prediction: Is a Rebound to ATH Imminent?
Following the token burn event, BONK coin’s recent price action bounced from the 100-day EMA mark. After hitting an ATH of $0.00005916, the BONK crypto has been in a retracement phase and has corrected more than 44% in a month.
Over the past week, the BONK price surged more than 30% and retained buying interest. Fueled by a substantial volume surge, it replicated signs of completing the profit booking phase. Moreover, a fresh rally toward ATH highs could be seen in the coming sessions.
Looking at the technical indicators front, the Relative Strength Index (RSI) line recouped from the oversold region. Furthermore, it was heading toward the 50 threshold level. It showed a bullish crossover and hints that buyers have regained traction.
Moreover, the On-Balance-Volume (OBV) remained high. That showed sustained buying pressure and boosted BONK’s bullish outlook as traders continued to step in for a reversal trade.
The recent token burn event boosts social engagement and shifts participant sentiment. Therefore, the BONK coin has a high chance of rallying to its ATH shortly.
BONK bulls take the lead: Potential Uptrend Continuation?
The Open Interest (OI) has risen over 2.84% to $10.88 Million over the past 24 hours. A rise in Open Interest and volume typically indicates growing market activity and interest in BONK.
Data from Coinglass showed a shift in market sentiment. Following a 5% rally intraday, 51.48% of the positions on BONK are now long. At the same time, shorts have decreased to 48.52%, suggesting a potential trend reversal.
Overall, the increasing buyer interest, social engagement, and fresh long positions could propel the BONK price higher. The immediate support zones for the BONK coin were $0.00003300 and $0.00003120. On the other hand, the resistance zones were $0.00003540 and $0.00003700.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
