BONK price breaks key support, retracing 45% since mid-July peak

BONK price risks sliding toward $0.000015, but an upcoming 1 trillions token burn and growing institutional treasury interest could contain the selloff and fuel a major rally.

After rallying to a peak of $0.00004075 in mid-July, Bonk (BONK) price has retraced by roughly 45%, now trading near $0.0000223. Importantly, the key support–resistance flip zone at $0.000023–$0.000025 was lost a few days ago — a huge bearish development as the former horizontal resistance failed to hold as support.

Adding to the downside pressure, BONK price has slipped below the 50-day SMA, while the RSI continues to drift toward oversold territory. The 100-day SMA now serves as the final line of defense, with BONK price currently testing this level. A breakdown here would significantly increase the risk of a deeper decline toward $0.000015, a key level which also coincides with the ascending trendline from April.

BONK price: a buy-the-dip moment?

However, there’s a silver lining to this bearish technical picture. The team announced today that they will burn 1 trillion BONK tokens once the memecoin reaches 1,000,000 holders, significantly cutting its circulating supply. According to Solscan, the holder count is currently 974,838, which is only 2.52% (25,162 holders) shy of the 1M milestone.

In addition to upcoming token burns, BONK has another major bullish catalyst. Safety Shot, a Nasdaq-listed company known for its patented beverage that rapidly reduces blood alcohol content, recently announced that the company is allocating $25 million in BONK tokens to its treasury. This makes Safety Shot the second publicly announced treasury to hold BONK, following MemeStrategy’s initiative by Everything Blockchain, which aims to build a public portfolio of memecoins including BONK, PEPE, and SPX6900.