BONK Signals Potential Rebound as TD Sequential Indicator Flashes Buy Signal

• TD Sequential and RSI suggest BONK is oversold, hinting at a potential rebound.
• Bonk Inu’s token burn plans could reduce supply, boosting long-term price stability.
• Declining open interest and volume signal weak speculative demand for Bonk Inu.

Bonk Inu (BONK) may be gearing up for a price recovery as the TD Sequential indicator signals a potential buying opportunity. Crypto analyst Ali Martinez highlights that the daily chart has flashed a buy signal, suggesting a possible reversal. This aligns with the formation of a morning star pattern, which often precedes a bullish turnaround. 

The coin’s immediate target sits at the S1 pivot of $0.000028, while the psychological barrier of $0.000020 could act as strong resistance. If these levels break, renewed buying interest might drive short-term gains.

BONK’s Token Burn Strengthens Bullish Outlook

Another significant development supporting BONK’s potential recovery is the announcement of a large-scale token burn. The official Bonk Inu account recently confirmed that 2.025 trillion tokens will be burned throughout 2025. This burn coincides with the memecoin’s Dragon event and the upcoming Lunar New Year celebrations. 

Additionally, the coin will undergo further burns upon the completion of BIP No. 75 voting via the Realms program. A reduction in circulating supply could fuel buying pressure, improving the memecoin’s price stability and long-term outlook.

Market Trends and Derivatives Data Indicate Mixed Sentiment

As of press time, the coin trades at $0.0000169, reflecting a 2.14% decline in the past 24 hours and a steep 31.63% drop over the past week. The token’s market capitalization stands at $1.3 billion, supported by a circulating supply of 77 trillion tokens. Despite recent downturns, analysts suggest that the token’s technical indicators point toward a potential shift in momentum.

However, derivatives coinglass data reveals declining market activity. Trading volume fell by 15.96% to $27.97 million, while open interest decreased by 5.85%, settling at $9.35 million. A decline in both metrics indicates reduced speculative interest, which could delay an immediate recovery unless buying momentum strengthens.

Technical Indicators Suggest a Possible Reversal

BONK/USD daily price chart, Source: Trading view

Technical analysis presents a mixed outlook for the memecoin. The Relative Strength Index (RSI) currently sits at 28.18, indicating an oversold condition. This suggests that the memecoin might be nearing a consolidation phase or a rebound. 

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains in bearish territory, with the MACD line below the signal line. However, a crossover near the zero line could signal a shift in momentum, potentially driving a price recovery.