The meme cryptocurrency Bonk (BONK) has been on a huge rise today, 24th April 2024, and for the past few days, soaring over 80% in the last 7 days. The catalyst behind this rally is the recent approval of a proposal by the Bonk DAO to burn nearly 280 billion BONK tokens from its treasury. 

The Bonk DAO voted to destroy 278,393,137,215 BONK, representing 100% of the tokens it had earned through its revenue-sharing agreement with BONKBot since the project’s launch late last year. BONKBot is a popular Telegram trading bot on the Solana blockchain that charges a 1% transaction fee, with 10% of those fees going to the Bonk DAO’s treasury.

By burning these tokens, the DAO is aiming to reduce Bonk’s total supply and stabilize the market dynamics. This move aligns with the community’s desire for a token burn, similar to the ongoing burns conducted by BONKBot itself from the fees it collects.  

The Bonk community has welcomed this deflationary move with open arms, driving significant buying pressure and propelling BONK’s price skyward. At the time of writing, BONK is trading at $0.00002657, up by over 30% over the past 24 hours according to market data.

BONK Data Chart (CoinMarketCap)

With a circulating supply of over 65.1 trillion tokens and a market cap exceeding $1.7 billion, Bonk now ranks as the 61st largest cryptocurrency by market cap. Its 24-hour trading volume of $608 million accounts for a massive 257.39% increase in the last 24 hours as of writing. 

BONK Technical Analysis

On the weekly chart, BONK has been in an uptrend for the past two consecutive weeks after finding support at the $0.00001300 demand zone. Prior to this, the price had been gradually declining, filling a significant fair value gap left by a sharp upward move in late February. After filling these gaps and tapping into the demand zone, BONK has skyrocketed higher. The weekly Relative Strength Index (RSI) of 53 suggests there is still room for further bullish momentum before a potential retracement to immediate support levels and fair value gaps.

BONK Daily Price Analysis  

BONK broke out of a double resistance ( a descending trendline resistance and horizontal support) on April 21st. After a brief retest represented by a red candle on the chart, the rally continued. The next key resistance target is around $0.00002929. If rejected at this level, prices may correct lower to fill Fair value gaps arising from these impulsive trends and the immediate support levels, potentially around the $0.00002000 level breached on April 21st. The daily RSI stands at 62, indicating a potential for some corrective retracements to ease the overbought conditions.

BONKUSD Daily Price Chart (TradingView)

4-Hour Price Analysis

On the 4-hour chart, BONK is approaching the $0.00002929 resistance level, with an extremely overbought RSI reading of 83. This suggests a retracement is likely imminent, potentially targeting the $0.00002000 support zone to relieve the overbought conditions.

BONKUSD 4-Hour Price Chart (TradingView)

The Bonk community remains optimistic about the token’s prospects and Bonk cryptocurrency is gaining traction, fueled by the recent proposal of supply reduction and the project’s growing popularity. However, traders should exercise caution and manage risk appropriately in this volatile market.