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