BONK Price Surges 10% As Treasury Proposes 84B Token Burn
BONK’s price was bearish in the early hours of the day before support was established at the intra-day low of $0.00002. However, with the announcement of the treasury proposing an 84 billion token burn, the digital asset witnessed a 10% surge, reshaping investor sentiment and market trend.
BONK Token Burn Announcement Spurs Market Rally
After a slow early morning, BONK’s price surged in response to the treasury’s revelation of a large token burn. The planned 84 billion tokens’ removal from circulation to decrease the token supply prompted a rise in the market capitalization by 10% to $1,640,663,484 and a sharp price increase. At press time, BONK was trading at $0.00002391, a 10% surge from the intra-day low.
This strategy is part of a broader effort to enhance token scarcity and increase its value over time. This can be considered as the turning point for BONK since decreasing the supply is usually positive for the investors. This burn according to the announcement represents the q2 amount of BONK sent to the DAO from BONKBot.
BONK DAO has received a proposal to BURN ~84B BONK from its Treasury representing the Q2 amount of BONK sent to the DAO from BONKBot.
All BONK locked on BonkRewards is now able to vote on community proposals.
Voting:https://t.co/akvJAfpCcM
— BONK DAO (@bonk_dao) July 8, 2024
Market analysts noted that there was a 169% uptick in trading volume to $483,000,836 following the announcement, which indicated that investors were again interested in the token. The proposal, however, is still subject to final approval and the voting has been opened even though it has created an immediate effect on the market.
Community Support and Previous Burns
In April, the BONK Decentralized Autonomous Organization (DAO) had already set a precedent for such impactful decisions. The DAO passed a proposal to burn a staggering 278.39 trillion BONK, with the community vote showing overwhelming support: 418.63 trillion votes in favor, representing 99.9% approval.
This previous burn demonstrated the community’s trust in the token’s management and its commitment to fostering a healthy market ecosystem for BONK.
The BONK DAO community proposal to BURN 278,393,137,215B BONK has passed via council vote.
With almost 5% of the supply in https://t.co/UN7NfId560 we are excited to integrate Armada and Realms to allow for community governance and voting with that BONK in the future! pic.twitter.com/N3D8fjneEP
— BONK DAO (@bonk_dao) April 24, 2024
Previous token burns have led to positive price adjustments and have been well-received by the investor community, reinforcing expectations that the latest proposal will have a similarly favorable impact. If the proposal is passed, the BONK price may retest its all-time high hit of $0.00004704 in March despite being 49% away from it.
BONK/USD Price Trend
The technical indicators on the BONKUSD price chart point to continued bullish momentum. The Money Flow Index (MFI) rating of 53.22 suggests that money flows in the BONK market may sustain a bullish rally.
In addition, the Moving Average Convergence Divergence (MACD) has shifted into the positive region and above its signal line, reflecting a strengthening bullish trend. Moreover, the histogram developing higher bars suggests that buying pressure is increasing.
Source: TradingView
Concurrently, with a Relative Strength Index (RSI) rating of 57, this bullish momentum will likely trend upwards, with a potential target of $0.00003600 after hitting a double-bottom pattern on the 4-hour price chart.
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