Bull Case Unfolds as BONK.fun Token Repeats History at Key Neckline

BONK, a token associated with the broader BONK.fun ecosystem, has recently drawn attention from analysts following a potential bullish breakout. The token is currently retesting a key neckline level after completing an inverse head and shoulders pattern on its daily chart, a technical formation often associated with upward momentum. At the time of analysis, BONK was trading near $0.000021, retesting support around $0.00002, a level that could signal a continuation of the upward trend if buyers remain active.

Analysts have highlighted the significance of this retest, with Jonathan Carter noting on X that a successful hold at the neckline could indicate a 100% upside potential. The price has already breached key targets at $0.000024 and is eyeing further levels at $0.000030, $0.000037, and beyond. The token is also forming a bullish flag pattern, a consolidation phase that may precede a renewed upward move if the resistance at the upper edge of the flag is overcome. BONK is currently trading above its 200-day moving average, a positive sign for long-term investors, and the RSI remains neutral, indicating a balance between buying and selling pressure.

However, not all market indicators are uniformly bullish. Open Interest (OI) in BONK futures contracts has fallen significantly, from $73 million in July to $29 million as of the most recent data, according to CoinGlass. This decline in OI suggests that trader participation and risk appetite have softened, potentially signaling caution in the broader derivatives market. Analyst AltwolfCrypto noted on social media that a reversal to the 200-day EMA and a move above $0.000022 would be necessary to confirm a shift in trend. Currently, the token remains in a downtrend, having declined more than 50% from previous highs.

Despite these cautionary signals, BONK has shown recent strength. Over the last 24 hours, it gained 5%, while its daily trading volume exceeded $225 million. This suggests that retail traders and short-term investors remain engaged with the asset. The token’s inclusion in Grayscale’s tracking list earlier this month has also drawn the attention of institutional investors, although it does not represent an endorsement or investment in the asset. This addition could lead to increased visibility and potentially more institutional capital flowing into the market.

Market participants are now closely watching whether BONK can hold the neckline and break above the flag structure, both of which could unlock the next phase of upward movement. Analysts remain divided on the likelihood of a sustained rally, but many agree that key technical levels will be crucial in determining the token’s short-to-medium term trajectory.

Source: [1] BONK Targets 100% Rally After Neckline Retest Begins (https://cryptopotato.com/bonk-targets-100-rally-after-neckline-retest-begins/) [2] Top BONK.fun Ecosystem Coins by Market Cap (https://www.coingecko.com/en/categories/letsbonk-fun-ecosystem)