The meme coin landscape is no stranger to volatility, and Bonk (BONK) is no exception. After a sharp decline over the past week, BONK is now showing promising signs of a potential rebound. With key technical indicators flashing buy signals and a major token burn event on the horizon, investor sentiment may be poised for a turnaround in early 2025.
Recent analysis by prominent crypto analyst Ali Martinez highlights bullish formations on BONK’s daily chart, suggesting that a price recovery could be imminent. As one of the leading meme coins on the Solana blockchain, BONK’s movements are closely watched by traders and long-term holders alike. The convergence of technical patterns and fundamental catalysts makes this moment particularly significant.
👉 Discover how market momentum could accelerate BONK’s next price surge.
Bullish Chart Patterns and Short-Term Price Targets
BONK’s recent price action has formed what appears to be a morning star pattern—a classic bullish reversal signal in technical analysis. This three-candle formation typically occurs after a downtrend and suggests weakening selling pressure, often preceding a sustained upward move.
If the pattern holds, BONK could initially target the S1 pivot level at $0.000028. While this represents a meaningful jump from current levels, it's not unprecedented given the asset’s historical volatility and speculative nature.
However, resistance at the psychological $0.000020 mark may act as a short-term ceiling. A decisive breakout above this level would likely trigger increased buying pressure, potentially unlocking further upside momentum. Should market conditions remain favorable, BONK could enter a new uptrend phase in the coming days.
Supporting this outlook, Ali Martinez noted that the TD Sequential indicator has generated a confirmed buy setup on the daily timeframe. This technical tool is widely used to predict trend reversals based on price exhaustion patterns. According to Martinez’s analysis, the signal points to a potential intraday rebound of 4.41%, which could serve as the starting point for a broader recovery.
While no indicator guarantees future performance, the alignment of multiple bullish signals increases confidence among traders that downside momentum may be fading.
Major Token Burn: A Supply Shock Catalyst?
One of the most compelling fundamental developments for BONK is an upcoming token burn of 2.025 trillion BONK tokens. This large-scale deflationary event is planned to coincide with the BONK Dragon celebration and Lunar New Year 2025, pending approval through BIP No. 75 via the Realms governance platform.
By permanently removing such a massive quantity of tokens from circulation, the burn will directly reduce overall supply—potentially creating upward price pressure if demand remains steady or increases.
Historically, token burns have had positive effects on cryptocurrency valuations:
- They enhance scarcity.
- Improve long-term tokenomics.
- Boost investor confidence by signaling project commitment.
For BONK, which already boasts a circulating supply of around 77 trillion tokens, eliminating over 2.6% of that total could meaningfully shift supply-demand dynamics. If market sentiment turns positive ahead of or following the burn, it could act as a powerful catalyst for price appreciation.
Moreover, community-driven events like these often generate renewed interest across social platforms and trading forums, further amplifying visibility and engagement.
👉 See how supply shocks influence meme coin valuations in real time.
Current Market Performance and Derivatives Sentiment
As of the latest data, BONK is trading at approximately $0.00001756, reflecting a 4.90% gain in the past 24 hours despite a 30.21% drop over the previous seven days. This recent bounce suggests that selling pressure may finally be subsiding.
The 24-hour trading volume stands at $144.85 million**, indicating strong liquidity and active market participation. With a current market cap of **$1.36 billion, BONK remains one of the top meme coins by valuation on Solana.
Derivatives Market Insights
Derivatives data offers additional clues about market positioning:
- Open interest has risen by 5.61% to reach $10.08 million, signaling growing trader interest and new positions being opened.
- Conversely, derivatives trading volume has dipped slightly by 0.51%, possibly indicating reduced short-term speculation or profit-taking after recent swings.
This divergence—rising open interest amid declining volume—often suggests that traders are taking longer-term directional bets rather than engaging in rapid scalping. It may reflect growing conviction in a medium-term recovery.
Technical Indicators: Oversold Conditions Signal Opportunity
From a technical standpoint, several indicators suggest BONK is nearing a turning point.
Relative Strength Index (RSI)
The RSI has approached the 30 threshold, widely regarded as the boundary of oversold territory. When an asset becomes oversold, it often experiences corrective rallies as value-seeking buyers enter the market.
A sustained move above RSI 30—especially if accompanied by rising volume—could confirm the start of a bullish reversal.
Moving Average Convergence Divergence (MACD)
Currently, the MACD line remains below the signal line, indicating ongoing bearish momentum. However, the histogram—which measures the distance between these two lines—is narrowing, suggesting that downward momentum is weakening.
This contraction hints at an imminent crossover, which, if it turns positive, would generate another strong buy signal.
Together, these indicators paint a picture of an asset that may have bottomed out after a harsh correction—positioning BONK for a potential rebound if broader market conditions support risk assets.
Frequently Asked Questions (FAQ)
Q: What is causing BONK’s potential price rebound?
A: A combination of technical buy signals (like TD Sequential and morning star pattern), oversold RSI levels, and an upcoming token burn of 2.025 trillion tokens are contributing to renewed bullish expectations.
Q: How does the token burn affect BONK’s price?
A: By reducing circulating supply, the burn increases scarcity. If demand stays constant or grows, this can drive price appreciation due to tighter supply conditions.
Q: Is BONK still a viable investment after its recent drop?
A: While past performance doesn’t guarantee future results, the current oversold condition and strong community activity suggest potential for recovery—especially with scheduled catalysts like the Lunar New Year burn event.
Q: What technical indicators should I watch for BONK?
A: Monitor RSI (for oversold rebounds), MACD (for momentum shifts), and TD Sequential (for trend reversal signals). Also watch for breaks above $0.000020 resistance.
Q: When will the BONK token burn happen?
A: The burn is scheduled after the conclusion of voting on BIP No. 75 via the Realms platform, likely aligned with Lunar New Year 2025 celebrations.
Q: Can BONK reclaim its previous highs?
A: While nothing is guaranteed, strong technical setups and fundamental catalysts improve the odds of a recovery. A breakout above key resistance levels could pave the way for higher targets.
With technical indicators aligning toward recovery and a major deflationary event on the horizon, BONK appears to be setting up for a pivotal moment in early 2025.
👉 Stay ahead of the next potential breakout with real-time market insights.