The BONK token, the fourth-largest meme coin, faced a turbulent Christmas after a 1.69 trillion token burn was delayed until December 26, 2024.
This sparked frustration among its holders and led to an initial price drop of 7%. However, the token has since recovered with a 4.32% increase, reigniting discussions about whether BONK can replicate its 50% rally from November.
With a current market cap of $2.43 billion, traders remain cautiously optimistic, betting on a potential price surge fueled by the supply-and-demand dynamics from the burn and the completion of a key technical breakout pattern.
Late BURNmas: What Went Wrong?
Community Outrage
The delayed burn event, initially promised for Christmas Day, was met with harsh criticism from BONK holders:
- BestBets, a prominent X user, accused the team of undermining trust:“This is honestly starting to feel like a scam… price is dropping and so is the trust.”
- Many others echoed the sentiment, with users like PootieCoin expressing their disappointment over the lack of transparency.
Market Reaction
- Initial Impact: BONK’s price dropped 7% immediately after the burn’s delay.
- Recovery: The token rebounded by 4.32%, suggesting that some traders are still bullish on its long-term prospects.
Can BONK Rally 50% Like Before?
Despite the backlash, the 1.69 trillion token burn remains a significant catalyst. Here’s why BONK may still have room to rally:
1. Supply and Demand Dynamics
- November Burn Success: A smaller burn of 100 billion BONK on November 13 triggered a 50% price increase within a week.
- Current Burn Impact: With a significantly larger burn, the reduction in circulating supply could pave the way for similar or even greater gains.
2. Symmetrical Triangle Breakout
- Technical Setup: BONK’s price action has been forming a symmetrical triangle pattern since early 2024. The delayed burn event may serve as the trigger needed to confirm the breakout.
- Price Target:
- A confirmed breakout could push BONK toward $0.000119, representing a 260% gain from current levels.
3. Bullish Technical Indicators
- MACD Crossover:
- The MACD line has crossed above the signal line, historically signaling upward momentum.
- Resistance Levels:
- BONK must break above the $0.0000240250 resistance to confirm its bullish trajectory.
Key Challenges for BONK
While BONK has strong upside potential, several challenges remain:
- Resistance at $0.0000240250: This critical level has capped BONK’s price for weeks, keeping it in a consolidation phase.
- Community Trust: The delayed burn has damaged investor confidence, which could dampen momentum.
- Market Conditions: Broader market volatility and uncertainty may impact BONK’s ability to sustain a rally.
Outlook for 2025
If BONK can successfully break resistance and capitalize on the burn’s reduced supply, the token could:
- Short-Term Target: Reach $0.0000240250, breaking out of its current consolidation.
- Mid-Term Potential: Achieve a 260% rally to $0.000119, driven by technical patterns and bullish sentiment.
However, sustained growth will require the BONK team to rebuild trust and demonstrate their commitment to the project’s long-term success.
