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TD’s sequential buy signal suggests that BONK could reverse next week
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BONK’s token burn of 2.025 trillion may fuel a price spike and supply squeeze
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RSI close to 30 suggests BONK has been oversold, increasing the chances of a bullish recovery
Bonk (BONK), which has been in a steep decline for the past week, is indicating a possible rebound. Ali Martinez, a crypto analyst, has highlighted a bullish set-up on BONK’s chart. This suggests that a price recovery is coming.
The TD sequential indicators, a tool commonly used to spot trend reversals and reversals of trends, have flashed a “buy” signal, indicating that the meme coin could be preparing for a move upward.
Chart Patterns and Target Prices
The latest price movement of BONK suggests a morning-star pattern, a bullish signal that could lead a recovery in the next week. If this pattern holds, the price may initially target the S1 level pivot at $0.000028.
A strong resistance at the psychological $0.000020 level may act as a barrier for further gains. A breakout above this price could increase the buying pressure and open the door to a stronger trend.
Ali Martinez’s analysis confirms this view by showing that the TD Sequential Indicator is signaling a short term 4.41% intraday recover, which could be the beginning of a bigger trend shift. If the buying momentum continues, BONK could continue to move upwards in the short-term.
Related: Dogecoin, Bonk and Pepe to be the key asset allocations in 2025
Massive Token Burn – A Bullish Catalyst For BONK?
The upcoming major token burning event could also boost BONK’s value. The official BONK team has announced that 2,025 trillion BONK tokens would be burned to celebrate the BONK Dragon and the Lunar New Year 2025. The planned burn will occur after the completion BIP No. 75 votes via the Realms Program.
This move could increase the value of BONK by reducing the total token supply. In the past, token burnings have had a positive impact on asset prices because they reduce the amount of tokens in circulation and increase demand. If investor sentiment changes, this burn event may be the catalyst for further price appreciation.
Related:PENGU Flips BONG, Becomes Solana’s Largest Meme Coin
BONK’s Current Market Data & Performance
BONK is currently trading at $0.00001756. It has increased by 4.90% over the last 24 hour but declined 30.21% in the past week.
Its 24-hour volume of trading is $144.85million, while its circulating supply is 77trillion BONK. This gives it a market capitalization of $1.36billion.
Derivatives Market Sentiment
According to Coinglass data the derivatives data shows mixed sentiment. BONK’s derivatives trading volume has decreased by 0.51%. However, open interest in the token has increased by 5.61%. This indicates that more traders have opened new positions, which is a sign of a growing interest.
Technically, the Relative Strength Index is near 30, which indicates that BONK is heading towards oversold territory. If the RSI begins to climb, a bounce may follow.
The MACD line is also below the signal line. This indicates a bearish momentum. The histogram’s narrowing gap suggests that the selling pressure is easing.
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