Bonk Bulls Charge as Memecoin Tests Key Resistance
Bonk (BONK) continued its upward trend on Tuesday, rising by 7% and marking a second consecutive day of gains. The Solana-based memecoin had fallen 14% last week but has since recovered some lost ground.
The improving conditions in the broader cryptocurrency market have led to increased demand for speculative assets like BONK, with retail traders increasing their exposure to the token.
A 20% increase in BONK futures open interest over the past 24 hours suggests that traders are opening new positions and increasing the notional value of active perpetual futures contracts. The positive funding rate also indicates that bullish bets currently dominate the derivatives market, with long positions paying out short exposure.
The technical outlook for BONK also favors buyers as it approaches a potential breakout from a falling-channel pattern. A confirmed daily close above $0.00000338 would signal a bullish breakout and could encourage additional buying pressure.