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BONK breaks through with a target price of $0.00003257, with all indicators favorable for a bull market.
- BONK confirms breakthrough, with open interest surging 17.28%, and a bullish price structure.
- Positive funding, forex outflows, and liquidation risks support further upward momentum.
Bonk [BONK] has officially broken through its downward channel that has persisted for months, confirming a bullish breakthrough that may mark the beginning of a significant trend reversal.
At the time of writing, BONK is trading at $0.00001595, up 12.56% in the past 24 hours. The price is approaching the resistance level of $0.00001900 - a critical level that may verify the breakthrough's viability or impede the upward momentum.
If this level transforms into a support level, BONK could rise to $0.00003257, with a potential increase of 108%.
However, if breaking through this resistance level, it may briefly retract to the $0.00001350 to $0.00001400 range before buyers re-enter.
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Traders Flood Derivatives Market, Exposure Surges 17%
This breakthrough has triggered a strong reaction in the derivatives market, with open interest surging 17.28% to $23.68 million.
This sharp increase indicates that traders are increasingly confident in BONK's upward potential and are investing capital in long positions.
In a bullish price trend, the increase in open interest typically reflects a belief-driven movement rather than speculative noise.
Therefore, the current surge suggests that this rally is attracting committed participants, not just short-term momentum chasers.
Funding Rate Analysis - Long-Term Demand Rises, Positive Skew Returns
Derivatives data shows that the OI-weighted funding rate has turned positive at 0.0064%, indicating a renewed bullish tendency in the market.
This shift contrasts sharply with the neutral to negative funding situation in recent weeks, when bears dominated market sentiment.
A positive funding rate means traders are paying a premium to hold long positions, indicating growing demand for upward exposure.
While the rate remains moderate, avoiding the dangers of excessive leveraged euphoria, it still highlights the fundamental psychological inclination of traders.
Forex Outflows Indicate Strong Holding Behavior
On-chain data shows a net outflow of $1.39 million from centralized exchanges, indicating that BONK holders are increasingly choosing long-term storage over immediate trading.
This move reduces the circulating supply available on exchanges, alleviating selling pressure and enhancing the possibility of continued price increases.
Historically, outflows of this magnitude are often accompanied by breakthrough rallies, as holders anticipate future appreciation.
Moreover, this behavior aligns with the overall sentiment in the derivatives market - traders are preparing for further increases.
Dense Short Positions May Intensify Squeeze Risk
BONK's current price movement is approaching a critical liquidity zone where short positions are primarily concentrated between $0.01520 and $0.01650.
As the price rises, these shorts face liquidation risks, and the resulting buying pressure could evolve into a comprehensive squeeze.
Liquidation charts show that traders using high leverage (especially 10x and 25x) are particularly vulnerable in this area.
If momentum continues and triggers large-scale liquidations, BONK could quickly break through $0.00001900, accelerating towards the $0.00003257 target.
This setup creates a feedback loop where price increases stimulate further purchases through forced exits.
Conclusion
BONK's breakthrough structure is supported by rising open interest, positive funding rates, major exchange fund outflows, and liquidation pressure around short positions.
These indicators tend to be consistent, indicating that bullish momentum is strengthening. If the $0.00001900 level transforms into a support level, BONK is poised to move towards the $0.00003257 target price in the coming days.
