BONK, the popular memecoin on the Solana blockchain, has once again captured the attention of investors with a remarkable two-day rally that saw prices surge by more than 22%. Currently trading at $0.00002477, BONK has outshined many of its competitors, driven by strong demand and a resurgence of interest from the community. The trading volume has doubled to $543.6M, while the market cap has surpassed $2 billion, signaling a renewed enthusiasm for the token.
The recent surge in BONK’s price is not just a numbers game. Safety Shot, a company listed on the Nasdaq, and Bonk.fun have initiated consistent buyback programs that are fueling the demand for BONK tokens. Additionally, BONK has been integrated into over 400 Solana decentralized applications (dApps), including popular DeFi protocols like Marinade Finance and various gaming ecosystems. Even the recent release of Solana’s Seeker phone, which incorporates BONK as a rewards currency, has further solidified the token’s presence within the Solana community.
What is driving the current surge in BONK’s price? The primary catalyst behind BONK’s breakout can be attributed to its tokenomics. Safety Shot’s acquisition of a 10% revenue share in Bonk.fun has led to a significant portion of fees being channeled back into regular BONK buybacks on OKX. With fees totaling $35 million in July, this translates to approximately $28 million in monthly purchases, creating a strong demand for BONK tokens and alleviating circulating supply pressure.
From a technical analysis perspective, the recent uptrend in BONK’s price commenced when it breached its 7-day Simple Moving Average (SMA) at $0.0000221 and its pivotal point at $0.00002397. This bullish momentum propelled the token to test the $0.00002572 high, just below the $0.000026 Fibonacci resistance level, which corresponds to the 23.6% retracement level from its all-time high of $0.00005916.
In terms of key levels to monitor, traders should keep a close eye on the $0.000025 threshold. Sustaining this level could pave the way for BONK to target its July swing high at $0.0000282, which aligns with profit-taking zones indicated on the charts. Conversely, a failure to defend the $0.000024 support level could negate the breakout and trigger a swift pullback towards $0.000021, with secondary support at $0.00002038.
As for indicators, the Relative Strength Index (RSI) is hovering above 66, signaling a potential overbought condition that may necessitate a brief cooldown period. However, the Moving Average Convergence Divergence (MACD) histogram has turned positive, indicating that short-term momentum remains in favor of the bulls.
In conclusion, the recent price surge of BONK is not merely a result of speculative hype. With structural demand, strategic partnerships, and widespread adoption across the Solana ecosystem, BONK appears to have established a solid foundation for its continued growth. Investors and traders alike should closely monitor key resistance and support levels to navigate the evolving price dynamics of BONK in the coming days.