• Bonk extends gains on Wednesday for the third straight day, rebounding from a crucial support zone.
• BONK.fun has introduced a bounty program, offering $7,000 daily over seven days to incentivize new tokens launched in Balanced Mode.
• The technical outlook for BONK is mildly bullish, as the uptrend in momentum indicators remains intact.

Bonk (BONK) is up 2% at press time on Wednesday, extending its third consecutive day of gains so far this week. BONK.fun has introduced a $7,000 daily bounty program to incentivize new token launches in Balanced Mode. The technical outlook for BONK shows a promising recovery from a key support zone, heading toward the 50-day Exponential Moving Average (EMA).

BONK.fun’s new program attempts to revive Bagworking across meme coin communities

BONK.fun introduced a new incentive program called “BONKfun Bagwork Bounties” in an X post on Tuesday. The initiative offers $7,000 of daily bounty for the next seven days to seven new Solana-based memecoin communities. 

BONK.fun aims to revive the “bagworking” culture among the memecoin communities, which is an intense marketing campaign aimed at supporting spot prices and retail demand. This new initiative will evaluate meme coins of over $100,000 market capitalization on the metrics of leadership, content quality, growth and on-chain activity. 

Bonk's recovery at hand nears bearish trenches

Bonk shows steady recovery so far this week, amounting to roughly 11% gains. The near-term bias is neutral, with a slight bullish tilt, as BONK extends its rebound from the support zone between $0.00000551 and $0.00000579. However, the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) continue to descend, with the price below them, and underscoring a prevailing bearish structure.

The Relative Strength Index (RSI) at 53 signals marginally positive momentum as it rises above the midline on the daily chart, suggesting buyers are gradually absorbing supply. The Moving Average Convergence Divergence (MACD) bounces off the signal line, avoiding a bearish crossover, as a renewed wave of positive histograms emerges, indicating persistent bullish momentum.

On the upside, BONK should surpass the 50-day EMA at $0.00000651 to test the $0.00000719 resistance level, which previously capped the recovery on March 18. A decisive close above this level would bring the 100-day EMA at $0.00000784 on bullish radar.

Looking down, the support zone between $0.00000551 and $0.00000579 serves as the last area of defense to the February 6 low at $0.00000514.

(The technical analysis of this story was written with the help of an AI tool.)