LUCKNOW (CoinChapter.com)—The price of Banana Gun (BANANA) surged to $20 on March 16, 2025, before the rally lost momentum and sputtered out. The token was going to outperform its betters in the sector before it succumbed to bearish pressure.
Banana Gun is a Telegram-based trading bot designed for automated trading across multiple chains, including Ethereum, Solana, and Binance Smart Chain. The project has steadily expanded its ecosystem, positioning itself as a go-to tool for traders seeking speed and efficiency.
The BANANA token has a total supply of 10 million, with approximately 3.2 million currently in circulation. A significant portion of the supply—around 46%—is allocated to the treasury and ecosystem fund, with 2.5 million tokens vesting over two years.
BANANA Price Losing Momentum
BANANA price failed to maintain its recent momentum, signaling a possible slowdown in buying pressure. The token surged from a March low of approximately $10.29 to a recent high near $20 but has since faced resistance. The latest price action shows a rejection near the 0.618 Fibonacci retracement level around $19.93, indicating that sellers are stepping in at key resistance zones.
The 20-day exponential moving average (EMA) is trending below the longer-term EMAs, suggesting that the broader downtrend remains intact despite the recent rally. The immediate resistance remains near $19.88, with a stronger barrier near $22.57.
A sustained breakout above these levels could trigger a move toward the 0.786 Fibonacci retracement at $22.55. However, failing to reclaim these levels could see BANANA price retesting lower supports, with $16.30 acting as the first significant downside target, followed by $13.96.
The Relative Strength Index (RSI) has climbed from oversold levels but remains below 50, confirming that bullish momentum has weakened. The volume profile also shows a decline in buying pressure, with volume fading after the initial breakout. This suggests that the rally could be losing steam unless new catalysts emerge.
For now, BANANA remains at a critical juncture. A push above $19.88 could extend gains, while rejection at resistance zones could reinforce a bearish continuation.
What Drove The Price Rally?
The latest rally has been fueled by growing community engagement and market enthusiasm. Over the weekend of March 15-16, influential voices on X amplified interest in the project. Several traders on X highlighted BANANA’s strong support among the Hispanic crypto community, referencing a recent livestream by @CdeCriptoz, further legitimizing the project.
Another trader, Donnie100x, called BANANA a “top conviction” pick, emphasizing its multi-chain functionality and ability to withstand broader market downturns.
Rising trading volume played a key role in the BANANA price rally. On March 15, BANANA’s 24-hour trading volume hit $141 million, indicating strong buying activity. The surge coincided with relative market stagnation, making the token’s outperformance even more pronounced.
However, the price action later suggests that the rising buying pressure likely resulted from a pump-and-dump scheme instead of tangible cues. Furthermore, concerns exist around the project’s tokenomics. The treasury holds nearly half the total supply, with a significant portion vested over time.
While the emissions structure aims to minimize inflation, questions remain about the long-term effects of unlocking large portions of tokens. Additionally, the revenue-sharing model promises 40% of bot fees to holders, but deductions for referrals could impact actual payouts.
While not immediately affecting price, these factors are important for those assessing the sustainability of BANANA’s growth.
An older but relevant factor in the token’s recent trajectory is its expansion within decentralized exchanges. In late Feb. 2025, Banana Gun integrated with the Sonic ecosystem, adding support for WAGMI and SwapX v2 + v3. While this move initially bolstered liquidity and visibility, its impact is now secondary to recent developments driving the token’s momentum.