The meme-inspired cryptocurrency BONK has captured renewed attention from traders and analysts alike after a 10% surge in the past 24 hours. This short-term rally builds on a stronger trend over the past week and month, with BONK posting gains of 37.89% and 88.37%, respectively. While the momentum appears bullish, a critical technical development could determine whether this rally sustains—or collapses.
Currently, BONK is trading within a major supply zone on the 1-day chart, a region historically associated with price reversals and downward corrections. This pivotal moment raises an urgent question: Will bulls break through resistance, or will bears reclaim control?
BONK Reaches Critical Supply Zone
A supply zone is a price range where large volumes of an asset are likely to be sold, often triggering downward pressure. BONK has now entered such a zone—a historically significant level where previous rallies faltered.
In past cycles, trading activity within this zone led to lower highs and lower lows, followed by a six-day bearish correction. If history repeats, BONK may face a similar pullback, especially with growing sell-side pressure.
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Technical analysis suggests two key price targets should momentum persist:
- Short-term target: $0.00003689 (51% upside from current levels)
- Long-term target: $0.00006230 (155% potential gain)
Reaching either milestone would mark a major bullish breakthrough. However, the path forward is far from guaranteed.
At the time of writing, on-chain data reveals that $4 million worth of BONK has been sold within this supply zone over the past 24 hours. This indicates strong profit-taking or distribution by large holders, increasing downside risk.
Yet, despite this selling wave, other metrics suggest underlying strength.
Bulls Hold Ground Amid Selling Pressure
Even as spot traders offload holdings, futures and derivatives markets show persistent bullish sentiment. One key indicator—Open Interest Weighted Funding Rate—remains firmly in positive territory.
This metric reflects the cost of maintaining leveraged long positions. When it stays positive over time, it signals that bulls are actively funding their bets, showing confidence in further upside.
Notably, BONK’s funding rate has remained positive for 20 consecutive days since April 22, according to Coinglass data. This prolonged bullish posture has helped the asset bounce back quickly after each dip, supported by strong demand in derivative contracts.
Another revealing metric is the long-to-short ratio, which measures the balance between buy and sell volume in futures markets. Currently, long positions dominate—indicating that traders are still betting on higher prices despite resistance.
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This divergence between spot selling and derivative buying creates a tug-of-war scenario:
- Spot market: Traders take profits → downward pressure
- Futures market: Traders add leverage → upward momentum
The outcome hinges on which side gains control in the coming days.
Technical Indicators Signal Bullish Momentum
Beyond sentiment and positioning, key technical indicators support the case for continued upside—provided BONK can withstand supply zone pressure.
Bull Bear Power Indicator
This oscillator measures the strength of buyers versus sellers by comparing price to moving averages. A green histogram above zero indicates bullish dominance.
For BONK, the Bull Bear Power has formed a consistent green bar pattern, signaling that buyers are currently in control of price action. As long as this indicator remains positive, the odds favor further rallies.
Chaikin Money Flow (CMF)
The CMF evaluates buying and selling pressure by analyzing volume flow over a 21-day period. A reading above 0.00 suggests accumulation—money flowing into the asset.
Currently, BONK’s CMF is above zero, indicating sustained institutional or smart-money buying. This supports the idea that recent pullbacks are being absorbed by strong demand.
When both Bull Bear Power and CMF align in bullish territory, it often precedes breakout attempts—especially if volume increases.
Key Factors Influencing BONK’s Next Move
While technicals offer insight, several macro and micro factors could tip the scales:
- Overall Market Sentiment
Bitcoin’s stability or volatility will indirectly affect altcoins like BONK. A broad market dip could trigger liquidations in leveraged longs. - Exchange Inflows/Outflows
Large deposits to exchanges often precede selling. Monitor wallet movements closely for early warning signs. - Social Media & Community Hype
As a meme coin, BONK remains sensitive to social trends. Viral narratives on X (Twitter) or Reddit can spark FOMO-driven pumps. - Liquidity Depth
Thin order books increase volatility. A sudden large buy or sell order can disproportionately impact price.
Frequently Asked Questions (FAQ)
Q: What is a supply zone, and why does it matter for BONK?
A: A supply zone is a price level where sellers historically outnumber buyers. For BONK, trading near this zone increases the risk of profit-taking and downward corrections.
Q: Can BONK break out despite heavy selling?
A: Yes—if bullish momentum from derivatives and strong technical indicators persists, BONK could overcome resistance and target new highs.
Q: How reliable are funding rates in predicting price direction?
A: While not foolproof, sustained positive funding rates suggest strong trader conviction. However, they can also signal over-leverage, increasing crash risk if sentiment shifts.
Q: What happens if BONK fails to break the supply zone?
A: Failure could trigger a retest of support levels around $0.000018–$0.000020, potentially leading to a 20–30% correction.
Q: Are meme coins like BONK suitable for long-term investment?
A: Meme coins are highly speculative. While they offer high reward potential, they lack fundamental utility, making them better suited for short-term trading than long-term holds.
Q: What tools can I use to track BONK’s price action?
A: Platforms like TradingView (for charts), Coinglass (for futures data), and blockchain explorers (for on-chain activity) provide real-time insights into BONK’s market behavior.
Final Outlook: A Pivotal Moment for BONK
BONK stands at a crossroads. On one hand, its entry into a major supply zone and $4 million in recent selling raise red flags. On the other, persistent bullish sentiment in derivatives markets, strong technical indicators, and growing community interest suggest resilience.
The next few days will be decisive. A breakout above the supply zone could unlock significant upside toward $0.00003689 or beyond. Conversely, failure to hold support may lead to a deeper correction.
For traders, this presents both opportunity and risk. Monitoring funding rates, order book depth, and on-chain flows will be essential in navigating BONK’s next move.
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