Bonk (BONK), the Solana-based meme coin, is showing signs of recovery after a recent crash, as investors and whales watch closely for a potential price rebound.
After reaching a two-week low of $0.00001980, Bonk appears to be stabilizing near a crucial support level. Market analysts suggest that whale accumulation and technical patterns could drive the token toward $0.000032 in the near term.
Whale Accumulation Signals Potential Upside
One of the most notable developments has been significant whale accumulation. Data from Nansen indicates that whales purchased 80 billion BONK tokens, increasing their total holdings to 2.61 trillion. This movement caused a sharp decline in exchange balances, from 24.7 trillion tokens to 23.98 trillion in a single day.
Whales continue to accumulate $BONK weekly, signaling strong confidence in the token’s long-term upside. Source: sk via X
Analysts suggest that these exchange outflows during a market dip are a bullish signal. Investors moving their coins off exchanges into self-custody imply confidence in a near-term rebound. This trend aligns with historical patterns observed in other meme coins, such as Shiba Inu, where strategic token burns and accumulation phases preceded significant rallies.
Fundamental Outlook: Token Burn Could Boost Price
At its core, Bonk is going to burn 1 trillion tokens when it reaches 1 million holders. The deflationary system is meant to decrease supply and subsequently inflate prices.
Economists note that slowing down towards the 1 million-holder milestone can delay the impact of the burn, but the move tracks on the heels of successful moves by other meme coins in 2021.
Technical Analysis: Bonk Aims for $0.000032
Technically, Bonk has broken an essential triangle pattern and level of resistance, and now it is resting just above daily support at $0.000020.
BONK holds support and eyes a 25% rally toward $0.000032 with a 1T token burn on the horizon. Source: MadWhale on TradingView
A double-bottom formation at $0.00001950 is further confirmation that the market is bullish. Experts anticipate that if the rebound continues, Bonk will hit the level of $0.000032, with the first target being the double-bottom pattern neckline at $0.00002757.
The technicals indicate that Bonk’s recent decline was likely a temporary shakeout rather than the beginning of a prolonged downtrend. With whale accumulation and upcoming token burns, conditions appear favorable for a near-term rally.
Trading Insights and Recommendations
This fusion of technical and fundamental analysis can be used by traders to inform entry, stop-loss, and take-profit strategies.
Red and green arrow charts can provide direct instructions for investors who want to follow likely price moves. Investors always need to keep market volatility in mind, however, cautions experts, and remind themselves of disclaimers from websites such as TradingView.
Investor sentiment is optimistically cautious.
Social media discussions, community interaction, and growing whale interest indicate that Bonk may see renewed momentum in the next few days. Although the meme coin is very volatile, these indicators favor the argument that Bonk’s recent support level has the potential to be a springboard for further gains.
Final Thoughts
Bonk (BONK) is recovering from a market correction and has support at $0.000020 and potential for upside to $0.000032.
Bonk was trading at around $0.00002058, down 8.13% in the last 24 hours at press time. Source: Brave New Coin
Whales are buying in, a token burn is planned, and technical momentum suggests the possibility of a short-term pop. As always, investors should do their own due diligence and consider both market and personal risk tolerance before taking a position.
