Solana-based meme coin BONK has recently flashed a major buy signal on the TD Sequential indicator following a dramatic 40% price crash over the past week. This technical analysis tool, used for identifying trend exhaustion and potential price reversals, suggests that BONK may be gearing up for a strong rebound to new highs, presenting a prime entry opportunity for investors amid the current market downturn.
According to crypto analyst Ali Martinez, the TD Sequential indicator has flashed a ‘9’ buy signal on the BONK daily chart. This signal comes after a week of consistent downward pressure that triggered a significant crash in the BONK price. Despite the recent decline, Martinez suggests that a strong rebound may be on the horizon for the meme coin.
Year-to-date, BONK has recorded an impressive 60.4% price gain, driven by bullish market conditions and increased demand for meme coins. However, CoinMarketCap’s data shows that BONK is currently on a bearish trajectory, nearly wiping out all its gains in 2025. The recent ‘9’ buy signal on the TD Sequential indicator suggests that this trend may be reaching its limit, potentially signaling a price reversal from the current bearish trend.
Martinez’s chart analysis reveals a series of bearish black candles aligning with BONK’s recent downtrend. The last white candle, which triggered the TD Sequential buy signal, indicates that bullish momentum may be building up for the meme coin. For traders, this could present a potential buying opportunity, provided the correct market conditions and factors align.
In general, when a cryptocurrency flashes a buy signal on its chart, it often suggests a favorable time to enter the market. Steep declines, such as the one experienced by BONK, are typically considered prime buying opportunities, as these dips offer low entry prices, allowing investors to acquire the asset at a discount before a potential rebound.
In other news, BONK has achieved a significant milestone by permanently removing over 2 trillion tokens from circulation. The marketing team behind the meme coin announced this monumental achievement on Friday, February 7, highlighting the community’s efforts in reducing BONK’s supply and inducing scarcity. While the massive token burn surprised many BONK community members, some users commented that such large-scale burns would have been more impactful if timed during a bull run, potentially sparking a stronger price surge for the meme coin.
Despite the 2 trillion token burn, BONK continues to trade sideways, experiencing significant volatility and price decline. The token burn has had no noticeable impact on its price dynamics. However, analysts remain optimistic about BONK’s future price outlook, considering the recent TD Sequential buy signal and the potential for increased investor interest in the meme coin sector.
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As always, investors should conduct thorough research and exercise caution when investing in highly volatile assets like meme coins. While the recent buy signal and token burn may indicate potential opportunities, the cryptocurrency market remains unpredictable, and investors should only invest what they can afford to lose.
Tags: BONK, Solana, meme coins, technical analysis, TD Sequential, buy signal