BONK Sees $33 Million Accumulation Amid Bullish Sentiment

BONK, a memecoin within the Solana ecosystem, has seen significant accumulation over the past week, with investors purchasing over $33 million worth of the token. This buying spree has been led by spot market participants, who acquired $31.44 million worth of BONK, according to CoinGlass’ Spot Exchange Netflow data. These tokens were transferred into private wallets, indicating a long-term investment strategy that has historically preceded market rallies. Additionally, smart money investors contributed $1.78 million, marking the largest smart money inflow for any memecoin in the Solana ecosystem over the past week, as reported by Nansen. This influx of capital from smart money holders, known for their profitable bets, suggests expectations of an incoming rally.

Derivative traders have also shown bullish sentiment, with the Open Interest Weighted Funding Rate holding above the positive threshold. This positive reading indicates that most active derivative contracts are long positions, and with a Funding Rate of 0.0114%, long traders are paying a premium to maintain their positions. AMBCrypto analysis reveals that BONK has broken out of a bullish chart pattern, with an upside target of $0.00003900. However, two major resistance levels remain: $0.00003461, which has already rejected price once, and $0.00003680 just ahead. Given the current pace of accumulation, BONK appears well-positioned to challenge these levels and possibly extend its rally. Nevertheless, the biggest obstacle to a sustained bullish breakout remains market-wide distribution.

The Accumulation/Distribution (A/D) ratio presents a contrasting view of BONK’s prospects. Despite aggressive buying from both spot and smart money, the overall market remains in a distribution phase. In the past 24 hours alone, total distribution volume hit 31.88 trillion BONK, indicating that more tokens are being sold than bought. At press time, the A/D metric had ticked slightly upward, suggesting that distribution may be slowing. If this trend continues, BONK could regain its longer-term bullish trajectory. However, if distribution resumes its downward trend, it could dampen BONK’s upside, even if it breaks out of the current bullish chart formation.

In summary, BONK has experienced significant accumulation, with over $33 million worth of the token purchased in the past week. This buying spree has been driven by both spot market participants and smart money investors, who have historically made profitable bets. Derivative traders have also shown bullish sentiment, with most active contracts being long positions. However, the overall market remains in a distribution phase, which could pose a challenge to BONK’s sustained bullish breakout. If distribution slows, BONK could regain its longer-term bullish trajectory. Nevertheless, if distribution resumes, it could dampen BONK’s upside, even if it breaks out of the current bullish chart formation.