In recent days, the price of the BONK token has shown significant growth, increasing by over 60%. This growth has been driven by positive news and changes in market dynamics.
Breakout from Descending Channel
The BONK price has recently broken out of a descending channel that had persisted for several months and has entered a strong upward trend. Since the breakout on July 2, the token has been showing consecutive green daily candles. Today, it reached an intraday high of $0.000024 and is testing a significant resistance zone that aligns with the previous local high from early May.
Reasons for Price Growth
The upward movement has been fueled by positive news surrounding token burns and ecosystem growth. Last week, the Bonk team announced their plan to burn 1 trillion BONK tokens once the holder count reaches 1 million. The current holder count is 950,300. Additionally, the launch of the LetsBONK.fun platform on April 25 has been boosting growth since 50% of the platform's revenues go towards BONK buybacks and burns.
Critical Levels and Forecasts
The BONK price is approaching a crucial decision point: a successful close above the $0.000024–$0.000025 region could validate a larger bullish continuation pattern—potentially a breakout from a cup-and-handle formation—with upside targets near $0.000040. However, with the RSI hovering above 75, the token has entered overbought territory, suggesting a possibility of short-term consolidation or pullback. If the price retraces, the zone around $0.000018 may hold as support.
The current price movements of BONK highlight the growing interest in the project and its ecosystem. Future actions, including potential token burns and further market movements, will be critical for holders.
