Bonk [BONK] Bulls Force a 23% Move Higher This Week After News of a BONK Token Burn Proposal
- WBOYOriginal
- 2024-07-16 17:18:56537browse
Bonk [BONK] bulls forced a strong move higher this week after news of a BONK token burn proposal. This 84 billion token burn proposal has not yet been approved
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The price of BONK [BONK] surged over 20% this week following news of a massive 84 billion token burn proposal. While the burn has yet to be approved, the prospect of a significant reduction in supply had traders speculating on a potential price surge.
The token enjoyed a 23% rally from Monday’s open. But as the week progressed, the trading volume began to decline. Is this a sign that the price pump is coming to an end?
The daily structure is turning bullish
Source: BONK/USDT on TradingView
On the 1-day price chart, we can see that the most recent lower high was set at $0.00000256 in mid-June. On 9 July, the daily trading session closed above this level, flipping the structure bullishly.
The 78.6% retracement level acted as a strong support level over the past six weeks. Bulls will be hoping to defend the $0.0000025 and $0.0000023 levels over the coming days.
The RSI broke above neutral 50, another early sign of a bullish trend shift. The OBV has slowly trended upward since March, signaling that another explosive rally is not a question of if but when.
Futures data showed positive sentiment
Source: Coinglass
The Open Interest rose from $205 million on 8 July to $283.3 million on 10 July. This rapid increase in OI alongside the price increase suggested that speculators were willing to go long on the memecoin.
Over the past 24 hours, it began to decline, but overall the short-term sentiment was bullish.
Source: Coinglass
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The funding rate climbed back into positive territory after dropping on 5 July and more recently on 9 July.
However, it was not abnormally positive which suggested that the market was not overheated.
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