- BONK developers were strategizing to break it out of months of stagnation.
- If history repeats, a breakout could materialize.
Memecoins are surging, with the top five memecoins posting double-digit gains. Among them, BONK Coin [BONK] has recorded an 11% weekly jump.
While multiple external factors are contributing to this rise, BONK has leveraged this momentum to fuel its rally by promoting an internal model, the impact of which AMBCrypto recently investigated.
BONK needs a catalyst to break out
As part of a strategy to reduce supply, BONK’s developers have introduced two new proposals aimed at removing a substantial number of coins from circulation.
The first proposal suggested a November burn of 100 billion BONK coins. The second proposal, marking the coin’s 2nd anniversary, proposed a massive 1 trillion burn.
This strategy could work well for the memecoin given the current market conditions.
Historically, November has been a bullish month for the crypto market. With the influx of election liquidity, the memecoin may be in a prime position to leverage this momentum.
Source: TradingView
Over the past six months, BONK has been in a downward trend. However, the coin has experienced a period of consolidation over the last three months, maintaining a relatively stable benchmark.
With the RSI in neutral territory and a bullish MACD crossover, the coin could be primed for a short-term reversal.
Given its lackluster performance in the previous bullish cycles, the memecoin may need more than just macroeconomic support to achieve a breakout.
Were community burns in the past beneficial?
In April, members of the BONK communities voted in favor of burning 278 billion tokens to mark a historic event for the crypto.
Following the announcement, BONK’s price surged by 40%, rising from $0.00002011 to $0.00002829 in less than 24 hours. This marked one of its biggest price increases this year.
Now, in hopes of repeating this success, the community will be voting on a similar proposal. The upcoming 1 trillion burn could lead to a monumental price appreciation.
Source: Coinglass
In the past 24 hours, Bybit exchange recorded over $1 million in BONK withdrawals. This could indicate that stakeholders are optimistic about the coin’s long-term growth, especially in light of its recent proposals.
Read Bonk’s [BONK] Price Prediction 2024-25
Thus, BONK developers are strategizing to capitalize on the current bull cycle and break the coin out of its slump.
If history is any guide, the memecoin could certainly rebound, but examining other key metrics will be crucial to assess its true potential.
