BONK, the inaugural dog-themed meme coin on the Solana blockchain, has recently captured market attention with a significant price surge.

The inaugural dog-themed meme coin on the Solana blockchain, BONK, has recently captured market attention with a significant price surge.

Current Price: $0.00001951

24-Hour Change: -2.72%

7-Day Performance: +24.10%

Market Cap: Approximately $1.5 billion

24-Hour Trading Volume: $272 million

At the beginning of the year, the token price slid to lows of $0.000014, but it has since bounced back, reclaiming key price levels, suggesting a potential shift in market sentiment towards the meme coin.

What's Driving The BONK Coin price?

In December 2024, the Bonk DAO initiated the “BURNmas” event, aiming to burn at least 1 trillion BONK tokens by December 25 to reduce supply and potentially boost value. The event exceeded expectations, with approximately 1.69 trillion tokens (worth over $51 million) being burnt.

Later this week, the Bonk community voted overwhelmingly in favor of burning an additional 3 trillion tokens to further decrease supply and potentially drive up the price of the beleaguered meme coin.

The vote on December 28 saw an overwhelming majority of 98% in favor of burning the tokens, which were leftover from a previous batch that had not yet been allocated.

The move comes amid broader efforts to save the meme coin, which slid sharply in November, threatening the gains it had enjoyed earlier in the year.

The Bonk price had slid to lows of $0.000014 at the beginning of the year, sliding from highs of $0.00004 that were reached in October. It has since bounced back somewhat, trading around $0.000019 at the time of writing.

The burning event is likely to have a significant impact on the Bonk price and could help to increase liquidity in the meme coin market.

The Burning Event Is Part Of A Broader Effort To Save The Meme Coin

The burning event is part of a broader effort by the Bonk community to save the meme coin, which slid sharply in November, threatening the gains it had enjoyed earlier in the year.

The Bonk price had slid to lows of $0.000014 at the beginning of the year, sliding from highs of $0.00004 that were reached in October. It has since bounced back somewhat, trading around $0.000019 at the time of writing.

The burning event is likely to have a significant impact on the Bonk price and could help to increase liquidity in the meme coin market. It remains to be seen whether the move will be enough to save the meme coin from slipping further.

Here’s a breakdown of the technical analysis for BONK, covering key resistance and support levels, technical indicators, and fundamental factors influencing the token's price.

Technical Analysis

After completing a bullish breakout from a falling wedge pattern, a classic technical indicator of a potential upward move, and supported by increased trading volume and positive momentum indicators, BONK is exhibiting bullish signals. This breakout could signify a continuation of the token's recent price surge.

Resistance Levels:

Immediate resistance is anticipated at $0.00002167, a key Fibonacci level that could pose an obstacle to further bullish advances.

A potential breakout target is emerging at $0.000025, which presents a significant resistance zone.

Support Levels:

Key support is established around $0.00001500, providing a foundation for the current bullish momentum. A breach of this level might indicate a reversal of the uptrend.

Additional support is seen at $0.00001241, offering an extra cushion if the price experiences selling pressure.

Indicators:

RSI (14): Currently at 78.01, indicating overbought conditions in the short term.

MACD: A bullish crossover of the MACD lines suggests increasing buying strength.

Moving Averages: Price is trading above the 20-day and 50-day EMAs, reinforcing the bullish trend in the mid-term.

Despite the RSI signaling overbought conditions, the overall technical setup suggests continued upward momentum, provided the price manages to stay above the mentioned support levels.

Fundamental Factors

In addition to technical analysis, several fundamental developments are contributing to BONK’s bullish outlook:

Community Engagement: BONK enjoys strong community support, which is evident in the active social media presence and engagement. This community involvement is a key driver of investor interest and enthusiasm for the token.

Solana Ecosystem Growth: As a Solana-