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Bonk holds near record-high as traders cheer hefty token burn

  • Bonk hit a new all-time high of $0.000056 on Sunday after surging more than 100% last week.
  • The dog-based meme coin announces a 1 trillion tokens burn by Christmas.
  • BONK’s trading volume reached a high of 2.67 billion on Sunday, while the technical outlook projects further gains toward a new high of $0.000062.

Bonk (BONK) price extends its gains on Monday after surging more than 100% last week and reaching a new all-time high on Sunday. This rally was fueled by the announcement on Friday that BONK would burn 1 trillion tokens by Christmas. Bonk’s trading volume has reached its highest level since its launch in December 2022, while the technical outlook projects more gains toward a new high in the upcoming weeks.

Bonk announces 1 trillion token burn by Christmas

Bonk announced plans to burn 1 trillion BONK tokens before Christmas on Friday. This announcement led to a 27% surge in the Bonk price that day, as the token burn is expected to positively impact the token’s value by reducing supply and increasing its scarcity.

Another aspect bolstering the platform’s bullish outlook is a recent surge in traders’ interest and liquidity in the Bonk meme coin. Santiment data shows that BONK’s daily trading volume rose sharply from 1.57 billion on Saturday to 2.67 billion on Sunday, the highest level since its launch in December 2022. 

BONK daily trading volume chart. Source: Santiment

Bonk Price Forecast: Towards new all-time high 

Bonk price surged more than 100% last week and hit a new all-time high of $0.000056 on Sunday and retreated afterward. As of this week, it trades slightly higher around $0.000053.

If Bonk continues its upward momentum, it may set the stage for a potential move towards a fresh all-time high at $0.000062, which aligns with the 161.80% Fibonacci extension level drawn from May’s high of $0.000044 to September’s low of $0.000015.

However, the Relative Strength Index (RSI) momentum indicator on the weekly chart trades at 71, above its overbought level of 70, signaling an increasing risk of a correction. Traders should exercise caution when adding to their long positions, as the RSI’s move out of the overbought territory could provide a clear sign of a pullback. Another possibility is that the RSI will remain above the overbought level and continue the upward momentum.

BONK/USDT weekly chart

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