BONK token burn proposal bumps the memecoin by 23%
(note: the post contains data by AMBCrypto)
Bonk’s (BONK) price jumped from $0.000021 to $0.0000026 in less than 24 hours between the 8th and the 9th of June. This happened after the news that Bonk DAO planned to burn another set of tokens.
In April, the team behind the meme coin burned 278 billion tokens after getting a 99.99% approval from its community.
After doing that, the price of the cryptocurrency went from $0.000014 to $0.000041 in less than six weeks.
Following the development, the Weighted Sentiment spiked. Weighted Sentiment shows if the comments online about a project are positive or negative on average.
At press time, the sentiment reading was 0.836, aligning with the first interpretation. Should this continue, demand for the cryptocurrency might increase. Eventually, it could also lead to an additional price increase.
However, in terms of volatility, AMBCrypto observed that it dropped. Volatility shows how fast price can rise or fall. If high, the metric can cause price to jump within a short period as long as buying pressure is present.
Also, if selling pressure is intense with high volatility, prices can drop very fast. For BONK, the low volatility implies that the price might keep moving sideways until a breakout occurs.
The volume also gave a similar signal. Initially, BONK’s volume rose to $580.18 million. But at press time, it was down to $350.41 million, meaning that interest in the memecoin was waning.
Considering the fall in volume and rise in price, the uptrend might become weak for the time being.
However, if Bonk’s community grant the DAO the go-ahead after the voting process, the price might replicate the kind of move it made in April.
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