Bonk Price Forecast: Moon Mission Imminent or Burst?

The sell-off in the market has poked holes in the meme coin super cycle, impacting tokens like Solana-based meme coin, Bonk. Cryptocurrencies bled profusely amid fears of an extended correction triggered by the German government’s persistent BTC selling activities. Although some coins show signs of bottoming out and starting fresh uptrends, Bonk price forecast shows that sellers still have the upper, and more decline should be expected.

Bonk Token Burn Proposal At Voting Stage

According to a post on BonkDAO, the community has been called upon to vote for or against a token burn proposal that could see almost 84 billion BONK removed from its treasury.

This represents 100% of all the tokens “earned by BONK DAO from its revenue sharing agreement with BONKBot in Q2.”

To increase community engagement, BonkDAO announced that any wallet holding BONK is eligible to participate on the condition they deposit BONK in the course of the 6-day voting period. Holders will be able to withdraw their deposited BONK after the vote concludes.

If passed such a massive token burn could have an immediate impact on Bonk price which according to CoinGecko data, hovered at $0.00002319 on Friday. A 10% decline in 24 hours underscores the soaring pressure on the sell-side.

Similarly, with the trading volume up 70% to $302 million amid falling prices, traders are more interested in selling BONK than buying it.

Bonk Price Forecast: BONK Targets Fresh Consolidation

Bonk is engulfed in heavy overhead pressure, trading nearly 50% from May’s peak of $0.000044. Although bulls defended support following the decline in July, the recovery that followed waned under $0.000027.

Currently, the meme coin holds between two key levels; support provided by the 20-day Exponential Moving Average (EMA) and 50-day EMA.

A consolidation period will likely follow as the Bollinger bands squeeze. This sideways movement will occur in the wide range between $0.00002 support strengthened by the 20-day EMA and resistance at $0.00003.

Bonk price shows signs of more distress as the Relative Strength Index (RSI) slides after an attempt to push above the neutral midline at 50. The RSI has also failed to break from the bearish divergence, implying a stronger bearish stance in the market.

On the other side of things, a bullish outcome is likely as long as the buy signal from the Moving Average Convergence Divergence (MACD) holds in the coming days.

Traders will reconsider their sell positions if the MACD line crosses above the neutral area as green histograms increase in tandem. The squeezing Bollinger bands could signal a major upswing, but for now, the most crucial levels to watch out for are the support at $0.00002 and resistance at $0.00002.

The post Bonk Price Forecast: Moon Mission Imminent or Burst? appeared first on CoinGape.