Memecoins on Solana have been among the growth leaders over the past few weeks. Several memecoins, including BONK, SHIB, and FLOKI, have seen significant price increases. the Solana-based memecoin has gained over 10000% in 2023, and now in 2024, a sharp rise in the number of transactions and unique BONK addresses signals the possible start of a new rally.
Interest in BONK is gaining momentum again
On March 4th, the number of daily transactions with BONK reached 187,000. However, by March 23rd, the figure had dropped to a 30-day low of 22,200 transactions. However, there have been encouraging signs in the last three days, though: the number of transactions has begun to recover, rising to 34,800 by March 25th.
Daily trading activity reflects these fluctuations. Not only that, after reaching 23,200 unique addresses on the same day as the peak of trading volume, the figure dropped to 5,660. Meanwhile, By March 25th, it had risen to 7,170. While the 7-day moving averages for both metrics are still declining, a gradual recovery in trades and active wallets hints at renewed interest in BONK.
RSI is in the neutral zone
The Relative Strength Index (RSI) rose from 35 to 57 in six days. This observed growth signals a significant recovery in buyer activity and places the asset in the “golden ratio” zone, indicating fair valuation. Meanwhile a bullish sentiment is supported by RSI values and short-term EMAs, which indicate the potential for upward momentum to develop.
Price forecast: The start of a new rally?
Recently, one of BONK’s short-term exponential moving average (EMA) lines crossed above the long-term EMA line, forming a “golden cross.” This rare technical pattern predicts long-term upward momentum.
The nearest critical resistance level is at $0.000036. Crossing this threshold could cause the price to rise to a new high of $0.000047, representing a potential increase of 80%. However, if the support fails, then the memecoin price could drop to $0.000019.
About BONK
Bonk is a memecoin built on Solana blockchain. Similar to other cryptocurrencies such as Cardano or Solana itself, Bonk is a digital asset that can be obtained, sold, and exchanged on various online platforms. However, Bonk distinguishes itself through its distinctive tokenomics, which is linked to its burning mechanism. Bonk has a maximum supply of 1 billion tokens, and already, over 65% of the total quantity has been burned.
This burning mechanism involves a percentage of every transaction being permanently removed from circulation, which leads to reducing the total amount of coins over time. This approach is designed to incentivize holding and discourage selling, thereby potentially increasing the value of each remaining token over time.
