Key points
- BONK rose 7% on Tuesday to reach $0.0000031, with buyers continuing to dominate.
- Open interest on futures contracts increased by 20% over 24 hours, while funding rates remained positive.
- BONK is now preparing to test a descending channel resistance level near $0.00000338.
Rising details
BONK (a meme coin built on the Solana network) continued its recovery on Tuesday, up 7% after a similar gain in the previous session. This rally over two days allowed the coin to regain the pullback of 14% that occurred last week. The improved conditions in the broader crypto market renewed demand for speculative assets, with retail traders increasing their exposure to BONK.
New capital inflows in the derivatives market
According to CoinGlass data, open interest on BONK futures rose 20% over the past 24 hours, indicating new position openings and an increase in the notional value of active perpetual contracts. Also, the open-interest-weighted funding rate remains positive at 0.0069%, meaning long position holders are paying short position holders—evidence that bullish bets currently dominate the derivatives market. However, rising open interest, while supporting upside, also increases volatility risks if heavily leveraged positions begin to get liquidated.
Technical levels
BONK trading above $0.00000300 on Tuesday, as it is currently testing a descending resistance line near $0.00000338 (connecting the May 10 and August 22 highs, and forming the upper boundary of a descending channel on the daily chart). The lower boundary of the channel sits near $0.00000185.
- A confirmed daily close above $0.00000338: could be viewed as a bullish breakout signal, with the next key target at the 50% Fibonacci correction level of $0.00000430 (calculated from the wider drop between $0.00000831 and $0.00000222).
- Failure to break above $0.00000338: could lead to another rejection from the channel’s upper boundary, and a reversal below $0.00000275 may extend the decline toward the last bottom at $0.00000222.
Momentum indicators
- The Relative Strength Index (RSI) on the four-hour timeframe rose to 53, above the neutral zone but below the overbought zone at 70.
- The MACD indicator and the signal line maintain a positive slope above the zero line, reinforcing an improved bullish technical picture.
Summary
BONK’s short-term direction will depend on whether buyers can turn the current resistance test into a confirmed breakout of the descending channel.