Bonk Inu (BONK) has shown significant upside pressure in the past 24 hours, reaching a one-month high of $0.00002900. As a result, it has become the largest meme coin by market capitalization within the Solana ecosystem.
BONK Outperformed Meme Coin
According to Coinmarketcap data, Bonk Inu's recent surge has increased its market capitalization to $2.02 billion, reaching WIF's market capitalization of $2.29 billion. This accomplishment places BONK within the top 50 cryptocurrencies listed in Coinmarketcap.
Despite this remarkable growth, Bonk Inu continues to lag behind prominent meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepecoin (PEPE), which have market caps of $15 billion, $9 billion, and $3 billion, respectively.
Why is BONK Price Moving Higher?
Bonk Inu's decentralized autonomous organization (DAO) issued an announcement that precipitated the most recent price increase. This week, the BONK DAO disclosed that it had received a proposal to destroy approximately 84 billion BONK tokens from its Treasury. This amount represents the Q2 amount of BONK sent to the DAO from BONKBot and is currently subject to a community vote.
Crypto projects such as Shiba Inu employ token burning to regulate inflation and the overall token supply. By decreasing the number of tokens in circulation, the objective is to enhance the value of the remaining currencies and establish a more resilient ecosystem.
Token burning typically contributes to the recent upward trend in Bonk Inu's value by supporting an asset's long-term price.
BONK Price Prediction Technical Analysis
In the daily chart of BONK coin price, the broader market outlook is corrective, while the most recent price trades higher within a bullish pennant support. Also, the dynamic 100-day SMA is below the current price, working as an immediate support with the high volume level.
As the current bullish wave is backed by a valid bottom formation at the 0.0000180 double bottom pattern, we may expect a decent trend continuation in the coming days.
Based on the daily outlook of BONKUSD, any minor downside correction with a bullish reversal from the intraday price could be a potential trend trading opportunity, targeting the 0.0000410 resistance level. Moreover, a valid breakout from the pennant pattern with a daily close above the 0.0000443 level could validate the long-term bullish opportunity, targeting the 0.0000550 level.
The alternative approach is to find a bearish daily candle below the 100 day SMA line, which might lower the price towards the 0.0000120 area.
