The Solana-based meme coin BONK has recently captured market attention after flashing a strong technical buy signal, despite suffering a steep 40% price drop over the past week. This sudden reversal in momentum has sparked renewed interest among traders and investors, many of whom are now questioning whether this dip presents a strategic entry point. With key technical indicators signaling a potential rebound and major supply reductions adding long-term value, BONK may be setting the stage for a significant recovery.
Understanding the TD Sequential Buy Signal
A crucial development in BONK’s recent price action comes from the TD Sequential indicator, a widely respected technical analysis tool used to identify trend exhaustion and potential reversals. According to crypto analyst Ali Martinez, the BONK/USDT daily chart has just triggered a "9" buy signal—a rare and powerful pattern that often precedes strong bullish reversals.
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This signal follows a week of relentless selling pressure that wiped out over 40% of BONK’s value, pushing sentiment into deeply oversold territory. Historically, such sharp corrections in meme coins often create ideal conditions for a bounce, especially when supported by technical confirmation. The appearance of consecutive bearish candles followed by a final bullish (white) candle—marking the TD 9 setup—suggests that selling momentum may be exhausted and buyers are preparing to step in.
While not a guaranteed predictor, the TD Sequential model has a strong track record across various crypto assets, including Bitcoin and Ethereum, during key market turning points. For traders, this is a signal worth monitoring closely.
BONK’s Price Performance: From Gains to Correction
Year-to-date, BONK had delivered an impressive 60.4% return, fueled by broader bullish trends in the cryptocurrency market and surging demand for meme coins. Assets like Dogecoin, Shiba Inu, and WIF saw significant rallies earlier in the year, and BONK rode that wave with strong community engagement and exchange listings.
However, 2025 has brought a shift in momentum. Data from CoinMarketCap shows BONK entering a pronounced bearish phase, nearly erasing all its earlier gains. The sharp decline reflects broader market sentiment, with investors rotating out of high-risk assets amid macroeconomic uncertainty and reduced speculative activity.
Despite the downturn, technical analysts argue that such pullbacks are healthy and often necessary before the next leg up. In fact, steep corrections like this one are frequently viewed as prime accumulation opportunities for long-term investors.
Supply Shock: 2 Trillion BONK Tokens Burned
In a move that could bolster long-term scarcity and investor confidence, the BONK team announced the permanent removal of over 2 trillion tokens from circulation. This massive token burn—publicly confirmed via social media on February 7—represents one of the most significant supply reductions in the meme coin’s history.
Token burns are a common deflationary mechanism used to increase scarcity, potentially driving price appreciation if demand remains stable or grows. While the immediate market reaction to the burn was muted—likely due to prevailing bearish conditions—the long-term implications could be substantial.
Some community members expressed that the timing could have been better, suggesting the burn would have had greater impact if executed during a bull run. Nevertheless, reducing supply by such a large margin strengthens BONK’s economic model and signals strong project commitment.
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Market Sentiment and Future Outlook
Despite ongoing price volatility, analyst sentiment around BONK remains cautiously optimistic. The convergence of a confirmed technical buy signal and a major supply reduction creates a compelling narrative for a potential rebound.
While short-term trading is inherently risky—especially in meme coins—strategic investors may see value in accumulating BONK at current depressed levels. Historical patterns suggest that assets undergoing deep corrections followed by technical reversals often experience strong recoveries, particularly when fundamentals or tokenomics improve.
Moreover, BONK’s integration within the Solana ecosystem continues to be a key strength. As one of the first meme coins launched on Solana, it benefits from high visibility, fast transaction speeds, and low fees—factors that support widespread adoption and trading activity.
Frequently Asked Questions (FAQ)
Q: What is the TD Sequential "9" buy signal?
A: The TD Sequential "9" is a technical indicator developed by Tom DeMark that identifies potential trend exhaustion. When it appears after a prolonged downtrend, it suggests a bullish reversal may be imminent.
Q: Did the 2 trillion BONK token burn affect the price?
A: Not immediately. While the burn reduces future supply and supports long-term value, short-term price movements are more influenced by market sentiment and trading volume.
Q: Is BONK a good investment right now?
A: It depends on risk tolerance. With a confirmed buy signal and reduced supply, BONK shows potential for recovery. However, meme coins are highly volatile—only invest what you can afford to lose.
Q: How does BONK differ from other meme coins?
A: BONK was one of the first meme coins on the Solana blockchain, giving it early-mover advantage. It also emphasizes community-driven development and regular token burns to manage supply.
Q: Where can I trade BONK safely?
A: BONK is listed on major exchanges with strong liquidity and security protocols. Always use platforms with robust verification and withdrawal safeguards.
Q: What factors could drive BONK’s price higher?
A: A combination of positive technical signals, continued token burns, increased adoption on Solana, and broader market recovery could all contribute to upward price momentum.
With technical indicators aligning with structural improvements in supply, BONK appears to be at a pivotal moment. While past performance is no guarantee of future results, the current setup suggests that patient investors may have an opportunity to enter before a potential rally.
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As always, conduct thorough research and consider your risk tolerance before making any investment decisions. The crypto market moves fast—but with the right tools and insights, you can navigate it with confidence.