Bonk Price Analysis: A Bearish Trend with a Silver Lining
The Bonk price has experienced a significant decline of around 45% since its mid-July peak, currently trading at approximately $0.0000223. This downturn has led to a breach of the crucial support zone with resistance between $0.000023 and $0.000025, which had previously served as a horizontal resistance level. The loss of this support zone is a notable bearish development, as the former resistance level failed to hold as support.
The Bonk price has also fallen under the downward pressure below the 50-day Simple Moving Average (SMA), while the Relative Strength Index (RSI) continues to drift towards the oversold region. The 100-day SMA now acts as the final line of defense, with the Bonk price currently testing this level. A breakdown at this level would substantially increase the risk of a further decline to the $0.000015 level, which coincides with the rising trend line from April.
Source: Tradingview
A Potential Catalyst for Growth
Despite the bearish technical picture, there is a silver lining for Bonk. The team has announced plans to burn 1 trillion Bonk tokens once the memecoin reaches 1,000,000 owners, which would significantly reduce its circulating supply. According to Solscan, the current number of owners stands at 974,838, just 2.52% (25,162 owners) shy of the 1-million milestone.
Institutional Investment and Token Burn
In addition to the upcoming token burn, Bonk has another significant bullish catalyst. Safety Shot, a Nasdaq-listed company known for its patented drink that quickly reduces blood alcohol content, has announced that it will allocate $25 million in Bonk tokens to its finance ministry. This makes Safety Shot the second publicly announced institutional owner of Bonk, following Memestrategy’s initiative to establish a public portfolio of memecoins, including Bonk, Pepe, and SPX6900.
The combination of the token burn and increasing institutional investment could potentially halt the decline and recharge the Bonk price. With the current price of Bonk at $0.0000223, which is equivalent to approximately 0.0000000015 US dollars, the incoming 1 trillion token burn and growing institutional financial interest may provide a much-needed boost to the memecoin. For more information on the Bonk price and its recent developments, visit https://crypto.news/bonk-price-breaks-key-support-retracing-45-since-mid-july-peak/
