Bonk Price on the Cusp of a 60% Surge: Here’s What You Need to Know
The cryptocurrency market is known for its unpredictability, but one coin that’s been making waves lately is Bonk. After a stunning 256% gain from June 22nd to July 17th, the price of Bonk experienced a 40% drop, only to find itself at a critical support level. This support zone, which is currently holding at around $0.000025, is based on the EMA 50 and has historically been a point of accumulation for buyers.
Technical Analysis: A Potential Reversal in the Making
From a technical standpoint, Bonk’s price is consolidating above the EMA 50, which is a bullish sign. The coin has also been holding at an important horizontal level, previously a resistance point, which is now acting as support. This zone has seen strong accumulation in the past, with buyers consistently stepping in to support the price. If Bonk can hold this support and the EMA 20 rejects around $0.000028, it could trigger a short-term shift in momentum to the upside.
A 60% Price Increase on the Horizon?
A clean break above the current resistance could lead to a run towards the $0.000032 to $0.000035 range, with the July high of $0.00004075 as a potential upward trend destination. This would represent a 60% increase from the current level, making it an exciting prospect for investors. However, if the price falls below $0.000024 with strong volume, it could lead to deeper retracements towards $0.000017, where the next structural support is.
The Power of Token Burning: A Key Catalyst for Growth
One of the key factors that could help Bonk’s price surge is the continued burning of tokens. The team behind Bonk has announced that 300 billion tokens have been burned from fees on the Letsbonk.fun platform, which has achieved significant deflation and critical technical support. With 50% of all revenue allocated for buybacks and burning, the token supply is being reduced, making each remaining token more valuable.
The numbers are impressive: on August 2nd, over 141,868.67 SOL were used for burning, out of a total of 283,736.33 SOL in platform revenue. This shows that the team is committed to deflation and is actively reducing the token supply. With a 24-hour volume of $126.85 million and $1.06 million in fees, Bonk continues to benefit from strong trade activity, which is being fed into the burning mechanism.
A Bright Future Ahead?
In summary, Bonk’s price is not just dependent on technical analysis, but is also supported by solid tokenomics. If the burning impulse continues and the price recaptures the EMA 20, a rally back to the $0.00004075 level becomes a real option. From the current level, this would represent a 60% gain, making Bonk an exciting prospect for investors. With its unique combination of technical support and token burning, Bonk is definitely a coin to watch in the coming weeks and months.
