BONK (BONK) Price Prediction: All Seem Set for $0.000029

Bonk (BONK), the top meme coin built on the Solana blockchain, has become the market's highest gainer. This happened after the price jumped by 25.08% in the last 24 hours.

Bonk (BONK) Surges 25% After DAO Announces Massive Token Burn Proposal

The top meme coin on the Solana blockchain, Bonk (BONK), has emerged as the market’s highest gainer with a 25.08% surge in the last 24 hours.

While other altcoins and meme coins also registered an increase, BONK's remarkable surge to the top is attributed to a major announcement by its Decentralized Autonomous Organization (DAO).

A Vast Amount of BONK to Be Erased from Existence

On July 8, via its X account, BONK DAO announced that it received a proposal to burn 84 billion from its treasury.

A token burn involves removing a specified number of crypto assets from circulation by sending them to a designated wallet address where they cannot be spent or retrieved.

This strategic move is typically employed to enhance scarcity and bolster the cryptocurrency's long-term value.

“BONK DAO is proposing a BURN of 83,917,950,070 BONK from its Treasury representing 100% of the BONK earned by BONK DAO from its revenue sharing agreement with BONKBot in Q2,” reads the statement from BONK DAO.

This is not the first time the team behind the meme coin has burned tokens. In April, 99.99% of its community voted in favor of a 278 billion BONK burn, and the broader market was in a bearish phase at the time.

However, BONK managed to benefit from the development as its price soared by 12% within a few hours. At the time, the price of the token dropped to as low as $0.000021. However, at press time, the meme coin trades at $0.000027.

A Surprising Outcome: Social Dominance Soars

According to on-chain data from Santiment, the outcome of the development is a rise in social dominance.

From the image above, the social dominance is 0.416%, reflecting a notable increase in mentions and discussions related to the meme coin.

If discussions around the token continue to rise, then the price may continue to move northward. For instance, the chart above shows how higher social dominance propels higher prices for BONK.

All Set for a Further Price Increase?

The technical perspective also supports a further price increase. Looking at the daily chart, the Relative Strength Index (RSI) is at 55.78.

The RSI uses a crypto’s speed and price changes to determine momentum. It also spots oversold and overbought levels, with readings at 30 or below being oversold and 70 and above indicating overbought points.

At 55.78, the RSI indicates that BONK's momentum is bullish. The Chaikin Money Flow (CMF), which assesses the flow of money, is also on the cusp of breaking into positive territory.

Collectively, the RSI and CMF indicate that BONK's price has more room for growth. A further assessment of the chart shows that BONK seems to mirror its price performance in April, which was around the same period as the burn of that time.

During that period, the price went from $0.000014 to $0.000027 within a few weeks. If a similar thing happens, the price may jump to $0.000029. In a highly bullish scenario, the value can reach $0.000031.

It is important to note that the project’s community has six days to approve or reject the proposal mentioned above.

If they agree to support the token burn overwhelmingly, as they did two months back, the bullish prediction will come to pass.

However, if holders of the meme coin decide to book profits from the recent price hike, the price may fall. Also, if the community says no to another burn, the token’s price may decline to $0.000023.🎜

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