- BONK developers were strategizing to break it out of months of stagnation.
- If history repeats, a breakout could materialize.
As a seasoned crypto investor with a penchant for memecoins, I must admit that the recent surge of BONK Coin [BONK] has caught my attention. With its 11% weekly jump and the potential strategies being implemented by the developers to reduce supply, it seems like BONK might be on the verge of a breakout.
Memecoins are experiencing a surge, and the leading five memecoins have seen gains in double digits. Notably, BONK Coin [BONK] has registered a 11% increase over the past week.
Despite various external elements propelling this increase, BONK has utilized this surge to boost its upward trend by emphasizing an internal strategy. This approach was recently scrutinized by AMBCrypto.
BONK needs a catalyst to break out
In my role as a crypto investor, I’m excited about the strategic moves by the BONK team. They’ve come up with two innovative proposals that aim to significantly decrease the coin supply in circulation.
Initially, it was suggested that 100 billion BONK tokens be burned in November as part of the first plan. However, the second proposition, commemorating the coin’s second anniversary, recommended an extensive burn of 1 trillion tokens instead.
This strategy could work well for the memecoin given the current market conditions.
Historically, the crypto market tends to perform positively during the month of November. Given the increased liquidity due to elections, the memecoin could potentially benefit from this upward trend.
For the previous half-year, BONK has been on a decline. But interestingly, it’s shown a phase of stability for the past three months, keeping its value fairly consistent.
In simpler terms, since the Relative Strength Index (RSI) is currently at a balanced state and there’s a positive MACD crossover, it seems that the coin might soon experience a temporary change in direction, moving from a downward trend to an upward one.
In light of its underwhelming past performance during market rallies, this memecoin might require additional factors beyond macroeconomic stimulus to experience a significant surge.
Were community burns in the past beneficial?
In April, the BONK community members decided to destroy 278 billion tokens as a significant milestone in the history of cryptocurrency.
After the announcement, the price of BONK jumped by 40% within a day, going from $0.00002011 to $0.00002829. This was one of the largest price increases for BONK in the current year.
Moving forward, we’re planning to replicate our past victory by putting the decision to a vote within our community for another similar proposition. If the forthcoming one trillion token burning event occurs, it could potentially spark an enormous increase in value.
Over the last day, Bybit exchange has processed more than a million dollars worth of BONK withdrawals, suggesting that investors might be hopeful about the token’s future development given its latest suggestions.
Read Bonk’s [BONK] Price Prediction 2024-25
Consequently, the team behind BONK is devising plans to leverage the ongoing bull market trend and help the coin escape its current downturn.
As a analyst, based on historical trends, I can confidently say that there’s a strong possibility of the meme coin bouncing back. However, to truly gauge its potential, it’s essential to delve into other significant performance indicators.
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2024-11-10 09:11