Solana Dog Coins Have Their Day as BONK and WIF Post Big Price Gains

The global crypto market cap currently stands at $2.4 trillion, marking a 2.30% decrease over the last day according to data from CoinGecko. Bitcoin, Ethereum, and all of the rest of the top 10 most capitalized cryptocurrencies are correcting today after a slow Monday.

However, some tokens are defying the market trend, with Solana meme coins BONK and Dogwifhat (WIF) standing out as two of the five best-performing tokens in the top 100 coins by market cap.

BONK, a dog-themed meme coin launched on the Solana blockchain on December 25, 2022, is up 13.5% in the last 24 hours. The coin spiked from $0.000021 to $0.000026, hitting a daily high of $0.000028 before correcting to its current price a few hours later. BONK is also up 40% in the week, and up 12% over the last 30 days, despite a heavy crash during the first half of April.

The spike comes as the Bonk DAO approved a proposal to burn over 278 billion BONK tokens, which is over $6.2 million worth of $BONK. The community vote ended with 418,625,159,192 votes in favor, representing a whopping 99.9% support of the proposal. A token burn is generally considered a bullish event because it reduces liquidity and makes the token scarcer.

From a Technical Analysis perspective, BONK is looking bullish but not strong enough to recommend a trade with a big margin of rewards. The coin is going through a price recovery phase, with the exponential moving average across 10 days (EMA10) and 55 days (EMA55) nearing a golden cross, confirming a bullish sentiment overall.

The Squeeze Momentum Indicator shows a strong bullish impulse, which is also confirmed by a strong Average Directional Movement Indicator showing that the current bullish movement is strong enough to expect further gains.

In an optimistic scenario, if BONK can maintain its momentum, then it may test a new resistance near $0.000028, with $0.000037 as the next target. However, a pessimistic scenario projects a post-hype correction with the token going to $0.000020, which is a clear support and is also the inflection point between the EMA10 and EMA55.

On the other hand, WIF, another prominent Solana-based meme coin launched in November 2023, has spiked by nearly 8.5% in the last 24 hours. Unlike BONK, the movement appears to be purely price-based with no major news or announcement behind the market reaction. WIF went up from $3.05 to a daily high of $3.54 before correcting back to its current price of $3.21. The coin is up 8.5% in the last 24 hours, 39.2% in the last 7 days, and 37% in the last 30 days.

Dogwifhat looks bullish overall, despite its 50% correction in early April. The gap between the EMA10 and the EMA55 is increasing, meaning that prices are accelerating as time passes. The Squeeze Momentum Indicator shows a trend reversal in play, with traders rebuying the token after the price correction.

For WIF, if the coin can successfully break past its daily high, proving its bullish sentiment, then the next bullish target could be the zone between $4.20 and its ATH of $4.80 (green line). If it fails to maintain momentum, then it may test support near the EMA55 at $2.60 (red line).

Edited by Andrew Hayward