BONK Remains Above Breakout Zone, Indicating Potential for Continued Upward Momentum

• BONK has shown significant strength as it consolidates above the breakout zone, with bullish indicators suggesting a potential price surge.

• Recent trading activity reveals a shift in market sentiment, with growing support from derivatives and spot flows.

• According to COINOTAG data, increased buying pressure corresponds with a positive funding rate, setting the stage for possible upward momentum.

BONK consolidates above key levels with strong bullish signals, indicating potential for an upward price trajectory as market confidence builds.

Spot flows show bullish pressure with inflows surpassing outflows

On-chain data illustrates a bullish sentiment for BONK, which recorded $14.18 million in inflows compared to just $12.91 million in outflows. This net inflow of over $1.27 million demonstrates the increasing accumulation pressure and suggests that more tokens are being retained rather than sold.

The influx of capital coincides with BONK stabilizing above its breakout level, hinting at the potential of a continuation rally.

Source: Coinglass

Traders gear up as hype cools: Is BONK prepping for a breakout?

Growing speculation around BONK is evident with a 26.41% increase in derivatives volume, now at $60.75 million, and Open Interest (OI) rising 15.81% to $23.86 million. This rise suggests a preparatory stance among traders, showing an expectation for a significant market move as they anticipate a confirmed breakout.

Interestingly, the social metrics for BONK have decreased since late April, with social dominance dropping to 0.056%. This faded excitement indicates a consolidation phase, which often precedes substantial price movements once market sentiment picks up again.

Source: Santiment

Bullish bias builds as BONK approaches key liquidation trigger zone

The recent shift in BONK’s funding rate adds credence to the optimistic outlook, currently showing an OI-Weighted Funding Rate of +0.0091%. This positive trend shifts trader sentiment from neutral to showing strong long positions, suggesting enhanced confidence in BONK’s upward trajectory.

A review of the OKX liquidation heatmap highlights a concentration of short liquidation levels around $0.000021 and above. As BONK approaches this price point, potential for a market squeeze increases if traders are forced to close short positions, which could exacerbate upward price movement.

Source: Coinglass

Can BONK capitalize on momentum to target $0.000025?

BONK’s ability to hold its breakout level signals continued strength, with supportive factors including robust spot flows and rising speculative activity combined with a favorable Funding Rate.

Despite a recent decline in social chatter, the underlying market structure suggests readiness for another upward movement. If BONK conquers the critical liquidation cluster at $0.000021, a swift upward movement toward $0.000025 seems increasingly plausible.