BONK Price Prediction: Key support level stabilizes, token burning boosts potential 60% rise.

The price of BONK has stabilized at the key support level and EMA 50 moving average after a significant recent pullback. Technical indicators show that the bullish crossover pattern remains intact, combined with the deflationary pressure brought by the ongoing strong token burning mechanism, laying the foundation for a potential rebound in BONK's price. If the current support is successfully maintained and EMA 20 moving average is reclaimed, a new round of pump may be initiated, with the target looking towards previous highs and a potential increase of 60%. This article will delve into the key support levels of BONK's current technical landscape and the catalytic effect of token burning, providing trading strategy references for crypto asset investors.

Technical Analysis: Key Support Emerges After Pullback The price of Meme Token BONK has experienced a significant pullback of 40% after a recent parabolic pump (soaring from a low of $0.00001143 on June 22 to a high of $0.00004075 on July 17, a rise of 256%). During this pullback, the BONK price fell below the 20-day Exponential Moving Average (EMA 20) and hit a low of $0.00002411 on August 2. However, the key 20-day/50-day moving average bullish crossover pattern (EMA 20/50 Bullish Crossover) remains intact, indicating that despite the correction, the overall upward trend momentum has not been broken.

Key support level: Historical resistance transformed into strong support Currently, the price of BONK is steadily consolidating above the EMA 50 moving average. At the same time, its price is also holding firm in a key support area—specifically around $0.000025 to $0.000026, which was previously a historical resistance level and has now turned into strong support. This area is of great significance to the price movement of BONK because:

1. Historical Breakthrough Level Verification: This area has repeatedly blocked the rise of BONK prices at the end of 2024 and in May of this year, forming a dense resistance zone. It was only after successfully breaking through this resistance recently that BONK started a strong upward trend.
2. Volume Accumulation Zone: The historical data of the volume distribution chart (Volume Profile) in this area shows significant signs of chip accumulation, indicating that buyers have continuously entered and supported at this price range.
3. Moving Average Support Resonance: Currently, the EMA 50 moving average is converging with the support level, forming a technical resonance, which greatly enhances the reliability of this area as a potential rebound starting point.

Upward Path and Risk Warning If the BONK price can successfully hold the current support level and effectively recover the EMA 20 moving average located around $0.000028, it will confirm that short-term momentum has shifted back to bullish. Once a clear breakthrough of the moving average resistance is established, it may push the price to explore the range of $0.000032 to $0.000035, and even challenge the July high of $0.00004075.

However, Risk Warning: If the BONK price significantly breaks below the support level of $0.000024 (i.e., below the recent low) with substantial volume, it will be considered a technical invalidation signal, which may open up a deeper pullback space, targeting the next structural support level near $0.000017. Crypto Assets investors should closely monitor changes in trading volume to assess the effectiveness of the support.

Token burning: A strong deflationary catalyst A key fundamental catalyst that can help BONK's price start from this support level and return to its previous high is its ongoing token burning. The project team has just announced that 300 billion BONK tokens have been burned through fees generated by the platform LetsBONK.fun. This large-scale burning has exerted significant deflationary pressure on the token supply at this crucial technical support level.

According to the dashboard data of the platform:

• 50% of the platform's total revenue is specifically used for the "Buy/Burn" mechanism, which involves purchasing BONK tokens on the open market and permanently removing them from circulation.
• On August 2nd alone, over 141,868.67 SOL out of the platform's total revenue of 283,736.33 SOL was used for token burning, clearly reflecting that half of its revenue is actively used to drive deflation.
• With a 24-hour trading volume of $126.85 million and $1.06 million in platform fee revenue, BONK continues to benefit from strong trading activity, which continuously fuels the Burn Mechanism.

Conclusion: Dual Drivers of Technology and Deflation, Significant Rebound Potential In summary, the current trend of BONK is not only supported by key technical support levels but also strongly endorsed by its solid deflationary token economic model (Tokenomics). If the momentum for token burning continues and the price can successfully reclaim the EMA 20 moving average, the possibility of BONK restarting its rise and challenging the peak of $0.00004075 on July 17 will significantly increase. Based on the current price level, this represents a potential 60% rise. Crypto Assets traders should closely monitor the defense of this support area, the progress of reclaiming the EMA 20 moving average, and updates on burning data, as these factors collectively form an important barometer for BONK's short-term price trend.