BONK Rallies on Oversold Bounce—Massive 2T Token Burn Could Fuel More Gains

BONK is showing strong bullish momentum after completing a corrective wave, with technical indicators and a potential wave (v) rally pointing to further price gains.An upcoming 1 trillion token burn and strong community growth could serve as key catalysts for continued upside.Launched December 25, 2022, BONK has achieved significant milestones. BONK is now showing signs bullish reversal signs after a horrific corrective phase. After shedding nearly 30% of its value post a 2.025 trillion token burn earlier this year, BONK has now bounced back with a vengeance.Notably, BONK has been reported to be among the top performing memecoins led by Dogecoin, Additionally, SHIB, and, PEPE all broke past key resistance levels.Notably, in its bullish amour lies positive technical signs coupled with an upcoming token burn event that could reignite interest and its market price momentum.BONK Price AnalysisBONK, which is swapping hands with $0.00001703 after a 0.43% surge in the past 24 hours has shown great recovery from a bottom of $0.0000089 on April 7. This happened after W-X-Y-Z corrective pattern, BONK has surged over 140% to a high of $0.000021 on April 28. This explosive move formed a classic five-wave impulse structure, with the current market suggesting that wave (iv) has bottomed and wave (v) is underway.The 4-hour chart confirms that wave (iv) retraced to the 0.382 Fibonacci level near $0.000016—a typical behavior for wave four—and has since formed a solid support base. The Relative Strength Index (RSI) at the time showed oversold conditions and a hidden bullish divergence, further reinforcing the likelihood of a continuation higher.BONK is now reclaiming key demand zones, with the $0.000017 level acting as critical support after previously serving as resistance. Short-term resistance is eyed at $0.00001860, and a sustained breakout above this level could confirm the start of wave (v) and unlock the next leg up toward $0.00002200 to $0.00002600, based on Fibonacci extensions and historical resistance zones.Massive Token BurnsSupporting technical indicators on this bullish quest is another fundamental driver- BONK’s massive burn. Earlier this year, BONK’s team burned over 2 trillion tokens in a bid to reduce circulating supply. Despite an initial dip post-burn, the token’s long-term prospects may benefit from the reduced supply.Now that BONK community is about to celebrate a significant milestone of 1 million holders on Solana, according to a renowned market watcher revealed that a new burn of 1 trillion tokens is scheduled—potentially sparking renewed demand and price action. These deflationary measures, paired with strong community engagement, are vital to sustaining the rally.If the $0.00001700 support holds and price reclaims $0.00001860 with volume, wave (v) could propel BONK toward $0.00002200–$0.00002600. However, if the price slips below $0.00001676, a deeper retracement toward $0.00001528 or even $0.00001379 could follow.The post BONK Rallies on Oversold Bounce—Massive 2T Token Burn Could Fuel More Gains appeared first on ETHNews.