TLDR:
- BONK successfully retested a falling wedge breakout with $1.27 million net inflows
- Price traded at $0.00002041, up 5.32% in 24 hours
- Derivatives volume rose 26.41% to $60.75M with 15.81% increase in Open Interest
- Short liquidation clusters around $0.000021 could trigger upward momentum
- Technical analysis suggests potential 77% rally to $0.00003243 if resistance breaks
BONK, the Solana-based meme coin, is showing promising signs of a potential upward move after consolidating above a key breakout zone. Technical indicators and on-chain metrics are aligning in a way that suggests bulls may be preparing for another push higher.
The token has successfully retested the upper boundary of a falling wedge pattern after breaking out on the daily timeframe. This pattern often signals the start of a sustained rally when backed by increasing market confidence.
At the time of writing, BONK traded at $0.00002041, marking a 5.32% increase in the past 24 hours. The price action shows stability above the breakout level, which confirms strength and sets the stage for a possible upward extension.
On-chain spot activity has aligned with bullish sentiment. BONK recorded $14.18 million in inflows compared to $12.91 million in outflows, resulting in a net inflow of over $1.27 million. This highlights growing accumulation pressure and suggests more tokens are being held rather than sold.
This buying interest emerged just as BONK stabilized above its breakout level, reinforcing the possibility of a continuation rally.
Derivatives Data Points to Growing Optimism
Speculative interest in BONK is gaining momentum. Derivatives volume rose 26.41% to $60.75M, while Open Interest (OI) increased 15.81% to $23.86 million. This suggests traders are positioning for a major move, likely anticipating a confirmed breakout.
Rising OI during a price increase often signals new long positions entering the market, adding to the bullish case.
The shift in BONK’s funding rate further supports the positive outlook. The OI-Weighted Funding Rate printed +0.0091%, confirming a positive tilt in trader bias. This move from neutral territory to a clear long-heavy sentiment implies traders are increasingly confident in BONK’s upward potential.
When funding rates trend positively alongside rising OI, it often suggests conviction behind the longs.
The OKX liquidation heatmap reveals a dense cluster of short liquidation levels around $0.000021 and above. This creates a potential fuel zone that could trigger a cascading squeeze if BONK pushes through this area.
Despite the technical momentum, BONK’s social metrics have declined since late April, with social dominance dropping to 0.056%. This decline in hype indicates a consolidation phase where market structure takes precedence over speculative chatter.
Technical Analysis Projects Higher Targets
Recent price action reveals that BONK is attempting to stabilize around the 200 EMA after being rejected by the local high near the 0.00002581 level. This rejection led to a measured pullback towards $0.00001820.
However, technical analysis suggests this retracement appears to be forming a bullish continuation setup rather than indicating a bearish reversal.
The retracement aligns with the 0.618 Fibonacci level, which is commonly associated with bullish corrections. It also coincides with a daily support zone around $0.00001832 to $0.00001841 and a resistance zone around $0.00002034.
This movement has led to a consolidation between these levels since May 15, with the price structure suggesting buyers are stepping in to defend the trend. This has led to the formation of a higher low.
From a volume standpoint, each upward impulse has shown rising volume since early April. However, the recent decline occurred on diminishing volume, hinting at exhaustion from sellers.
The key level to watch now is the point of control (POC) resistance at approximately $0.00001955. A confirmed close above this region would likely trigger a rapid expansion move toward the next resistance cluster around $0.00002581, before eventually reaching the predicted price target of $0.00003243.
At the time of writing, BONK is trading at $0.00001995, up by 1.6% in the past 24 hours.
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