Reasons Behind 25% BONK Price Increase, and Key Levels to Watch
BONK DAO recently received a proposal to burn 278,393,137,215 BONK tokens, causing the BONK price to increase further.
After a sharp price correction in early April, the BONK humor coin based on the Solana blockchain has been embarking on a strong recovery recently. In the past week, BONK price has increased by more than 25% and is currently trading at $0.00002074, with a market capitalization of $1.35 billion.
What is the reason behind the rise in BONK price?
BONK, a dog-themed token built on the Solana blockchain, saw a significant 25% price increase amid the overall rise in humor coins. This growth was largely triggered by a proposal that suggested a massive burn of the treasury totaling 280 billion tokens.
According to a tweet, BONK DAO, Bonk’s decentralized arm, also received a proposal to destroy 280 billion BONK from its treasury. The proposal also proposes the destruction of 278,393,137,215 BONK, equivalent to 100% of the BONK generated by BONK DAO since its inception in late 2023 through its revenue sharing arrangement with BONKBot. BONKBot, Solana’s Telegram trading bot, charges a 1% fee on all transactions, with 10% of the proceeds going directly to BONK DAO.
The proposal sparked excitement in the Bonk community and was seen as a positive move to stabilize the coin market and promote growth. As the proposal awaits approval, expectations have fueled a buying frenzy, further pushing up Bonk's price.
A key technical measurement tool used to identify market trends and pivot points of potential turning points, BONK price is currently trading at $0.00002. Traders also monitor this level closely to gauge directional changes in the asset.
BONK encountered immediate resistance at $0.000025, followed by subsequent resistance points at $0.000027 and $0.000029. These levels mark important points at which selling pressure is likely to intensify, potentially hampering further gains unless significant buying activity occurs.
On the downside, BONK price found initial support at $0.000018, with stronger support zones located at $0.000015 and $0.000013.
BONK’s RSI value is currently at 78, indicating possible overbought conditions. Conversely, the 50-day exponential moving average EMA is at 0.The $000017 level supports the long-term bullish trend, but is consistent with the recent overbought conditions suggested by the RSI. #大盘走势 $SOL $BONK
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