Bonk (BONK) has shown slight recovery in price on Thursday after a 5% weekly decline, currently trading around $0.000018. The meme coin’s team announced a 2.02 trillion token burn to celebrate the upcoming BONKdragon event and Lunar New Year 2025.
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Key Highlights
- Token Burn Announcement: BONK will reduce its circulating supply by burning 2.02 trillion tokens.
- Bullish Sentiment: Coinglass data reveals a surge in long-to-short ratios (1.14), signaling trader optimism.
- Technical Outlook: A 40% price rally could target the $0.000025 resistance if support holds.
Details of the BONK Token Burn
The BONK team confirmed the burn via social media, aligning it with the Year of the Dragon festivities. Token burns typically boost value by:
- Reducing supply – Enhances scarcity.
- Increasing demand – Encourages investor confidence.
Technical Analysis: Support Levels and Momentum
- Critical Support Zone: $0.000014–$0.000015 (tested Monday).
- RSI Recovery: The daily Relative Strength Index (RSI) rebounded from oversold levels (30), hinting at upward momentum.
- Bullish Target: A breakout could push prices toward $0.000025 (+40%).
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Market Sentiment and Data Insights
- Long/Short Ratio: Coinglass reports a 1.14 ratio, the highest in a month, reflecting bullish bets.
- Trader Behavior: Increased longs suggest expectations of a price surge.
FAQs
Why is BONK burning tokens?
To commemorate the Lunar New Year and BONKdragon event, while incentivizing price stability through reduced supply.
How does a token burn affect BONK’s price?
Burns decrease circulating tokens, potentially raising value if demand remains steady.
What’s the next resistance level for BONK?
A sustained rally may challenge **$0.000025**, provided support at $0.000014 holds.
Final Thoughts
The 2.02 trillion BONK burn and positive technical indicators suggest short-term upside potential. However, traders should monitor:
- Support levels for stability.
- RSI trends to confirm momentum.
Disclaimer: Crypto investments carry risks. Conduct independent research before trading.