- BONK pumped 100% last week; will the upward trend continue?
- BonkDAO planned to burn 1T BONK by Christmas – a bullish signal?
The Solana [SOL]-based memecoin BONK is up 100% in the last seven days, powered by a general market pump and a massive deflationary plan to burn 1 trillion tokens.
On November 15, Bonk DAO announced the deflationary plans with the 2024 Christmas deadline.
“The BONK DAO BURNmas SUPER thread. The mission: burn 1 trillion $BONK before Christmas. The campaign features BONK burns based on specific engagement criteria.”
Immediately after the news, BONK pumped 27% and added to its weekly gain, which exceeded 100% during an additional weekend pump. For context, burning tokens reduces supply and ultimately increases the value of the remaining assets.
What’s the next step for BONK?
Source: BONK/USDT, TradingView
Last week’s remarkable rally pushed BONK into a price discovery phase. To explore the next likely targets, a Fibonacci retracement tool (yellow) was placed between the previous all-time high (ATH) and the yearly low.
The additional pump on Sunday targeted the immediate bullish target of $0.000057 on the Fib tool. If the uptrend were to continue, the next target would be $0.000067, which would provide an additional 40% potential gain.
But BONK could grab the extra profits if the mememcoin stayed above its previous ATH.
That said, the technical indicators pointed to huge buying interest but an overheated market scenario. The Stochastic RSI was in oversold territory, while the OBV (On Balance Volume) reached new highs.
BONK whales reduce exposure
Source: Hyblock
In terms of market positioning, Whales have slightly reduced their exposure after last week’s rally, as indicated by the retreating Whale vs. Retail Delta Indicator.
Reduced exposure to whales usually leads to consolidation or price decline. BONK could face a cooldown and a pullback if they continue to shed their positions.
On the contrary, greater exposure to whales always signals a potential price increase.
Read Bonk [BONK] Price forecast 2024-2025
Interestingly, leveraged bulls also benefited from the BONK rally. OI (open interest) rates have tripled in just a few days, from about $50 million to more than $150 million. This suggested that leveraged players have taken on huge debt to place bullish bets on BONK.
Market experts expect the BONK rally to continue, partly due to the expected 1T token burn. However, broader market sentiment could determine the next price direction for the memecoin.
