• Bonk price extends its correction on Tuesday after tumbling over 10% in the previous day.
• BonkDAO said it was targeted by a malicious governance proposal that drained an estimated $20 million worth of BONK tokens from its treasury.
• BonkDAO has notified law enforcement and is working with relevant parties to recover the stolen funds.

Bonk (BONK) remains under pressure, trading below $0.0000044 on Tuesday after losing over 10% in the previous day. Monday’s correction occurred as Bonk Decentralized Autonomous Organization (DAO) announced a governance exploit that resulted in the theft of $20 million worth of BONK tokens from its treasury. The security incident has dampened investor sentiment, fueling the ongoing price correction in the meme coin.

Malicious governance proposal drains $20 million worth of BONK tokens

Bonk’s official X account announced on Monday that BonkDAO was the target of a malicious governance proposal that resulted in an estimated $20 million in BONK tokens being drained from the BonkDAO treasury.

“During the investigation, BonkDAO identified the exchange wallets used to purchase BONK ahead of the proposal. BonkDAO is currently actively working with exchanges, bridges and Solana Foundation to best manage the situation,” said Bonk on its X post.

The project said that it has notified the hack to law enforcement and that it is collaborating with relevant parties to recover the funds and identify the attackers. 

This security issue has weighed on investor sentiment, with BONK price correcting over 10% following this incident and extending the fallout into Tuesday.

If the attackers move the stolen BONK tokens to exchanges to liquidate the holdings, it would bring renewed selling pressure.

Bonk Price Forecast: Faces rejection from 50-day EMA

Bonk price faced rejection from the 50-day Exponential Moving Average (EMA) at $0.0000048 on Monday and corrected over 10% that day. At the time of writing on Tuesday, BONK extends its decline, trading below $0.0000045.

If the meme coin continues its correction, it could extend the losses toward the June low of $0.0000039.

Momentum indicators send mixed signals. The Relative Strength Index (RSI) on the daily chart reads 45, below the neutral level and indicating bearish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) continues to flash a bullish crossover, hinting at improving underlying momentum.

If BONK recovers, it could extend the advance toward the 50-day EMA at $0.0000048.