BONK Price Could Rise 60% as Token Burns Boost Deflationary Pressure

BONK, the memecoin experiencing a sharp 40% pullback from its July 17 peak of $0.00004075 to a low of $0.00002411 on August 2, is currently consolidating above a key support zone around $0.000025–$0.000026, which aligns with the EMA 50. This level has historically acted as resistance and is now showing strong accumulation, suggesting that buyers have been consistently stepping in [1]. The EMA 20/50 bullish crossover remains intact, signaling that upward momentum could resume if the price reclaims the EMA 20 at approximately $0.000028 [1].

A clean move above the EMA 20 could potentially trigger a rally toward $0.000032–$0.000035, with the July 17 peak of $0.00004075 serving as a possible upside target. However, a confirmed breakdown below $0.000024 on strong volume would invalidate the bullish scenario and open the door to a deeper retracement toward $0.000017 [1].

A key fundamental driver for BONK’s potential recovery is the continued token burning activity from LetsBONK.fun. On August 2, the platform burned 300 billion BONK tokens using fees generated from trading, significantly reducing supply and applying strong deflationary pressure [1]. According to the platform’s dashboard, 50% of all revenue is allocated to the Buy/Burn mechanism, where tokens are purchased and permanently removed from circulation. That day alone, 141,868.67 SOL out of a total 283,736.33 SOL in platform revenue was used for burning [1].

The deflationary strategy is supported by robust trading activity, with a 24-hour volume of $126.85 million and $1.06 million in fees generated. This continued burning mechanism, combined with BONK’s strong technical position, reinforces the potential for a 60% price increase from its current level, bringing it back toward its July high [1].

Source: [1] Can LetsBONK.fun token burns drive BONK price up 60% back to its July peak? (https://crypto.news/can-letsbonk-fun-token-burns-drive-bonk-price-up-60-back-to-its-july-peak/)