The Solana-based memecoin BONK experienced heightened volatility in the last 24 hours, falling 6% from its recent peak after large-scale exchange wallet movements overwhelmed bullish momentum from a major token burn announcement.
Massive Token Burn Sparks Early Surge
BONK began the session with bullish momentum, rallying to $0.00003763 following the announcement of a 500 billion token burn. This aggressive supply reduction initially sparked strong buying interest, with speculative traders piling in expecting a sustained uptrend.
The initial rally was driven by deflationary sentiment, as token burns typically reduce circulating supply and increase scarcity.
Exchange Transfers Trigger Price Reversal
However, the bullish trend reversed rapidly after a Galaxy Digital-linked wallet transferred approximately $18.75 million in BONK to major exchanges. This sudden move raised concerns of impending sell-side liquidity, causing a sharp 9% drop to $0.00003430 in under an hour.
The market interpreted these wallet movements as a potential signal of profit-taking or institutional unloading, shifting sentiment from bullish to cautious.
BONK’s price volatility spiked, swinging 15% between lows of $0.00003185 and highs of $0.00003763 during the trading session.
Support Holds Despite Price Fluctuations
Despite the sell-off, BONK stabilized above the $0.00003400 level, with technical indicators identifying strong support between $0.00003185 and $0.00003230. This zone held firm through multiple retests overnight, showing resilience despite increased uncertainty.
During the final trading hours, reduced volume and a 2% intraday recovery from $0.00003400 suggested declining bearish momentum.
A brief upward movement at 03:00 UTC pushed BONK to $0.00003438, further indicating short-term stabilization as buyers stepped in to absorb the dip.
BONK’s Outlook: Volatile But In Focus
BONK remains a high-volatility token with increasing institutional and retail interest, especially as altcoin trading volume rises in response to Bitcoin’s weakening market dominance.
The combination of token burns and large-scale transfers creates a complex environment, where bullish fundamentals clash with bearish on-chain signals.
As BONK continues to attract speculative attention, traders should monitor exchange wallet flows and key support levels for signs of reversal or continuation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.