[What’s behind the 25% increase in BONK price? Key levels worth paying attention to]
After experiencing a major price correction in early April, Solana-based meme coin BONK has shown a strong recovery of late, rising more than 25% in price in a week and currently trading at $0.00002074, with a market capitalization of $1.35 billion.
The main driver of the BONK price increase is the proposal to burn massive fiscal reserves of up to 280 billion tokens. This proposal was initiated by BONK DAO and proposes to burn approximately 278.3 billion BONK from its reserves, equivalent to the total amount of BONK generated by BONK DAO since its establishment in late 2023 through its revenue sharing arrangement with BONKBot. BONKBot is a Telegram trading bot on Solana that charges a 1% fee for trading, with 10% of the proceeds going to the BONK DAO.
This proposal aroused enthusiastic responses in the Bonk community and is regarded as a positive step to promote market stability and growth. As the proposal awaited approval, anticipation sparked a buying frenzy, driving Bonk prices higher.
In terms of technical indicators, Bonk’s pivot point analysis shows that the current price is $0.000022, a key level for observing market trends and potential turning points. Immediate resistance is at $0.000025, followed by $0.000027 and $0.000029, which are key points where selling pressure may intensify. Without significant buying, these resistance points could prevent further price gains.
As for support levels, Bonk finds initial support at $0.000018, with stronger support at $0.000015 and $0.000013. The Relative Strength Index (RSI) currently sits at 78, indicating that the asset may be overbought. Additionally, the 50-day exponential moving average (EMA) at $0.000017 shows support for the long-term uptrend, although the overbought status shown by the RSI should be a cause for concern.
