Bonk [BONK] has maintained bullish momentum, rising 38% over the past week, and it appears likely to continue this momentum.
Analysis shows that accumulation activity has strengthened during this period. However, broader market conditions continue to weigh down BONK's price—even as it approaches a potential breakout.
Investors continue to accumulate
Over the past week, BONK investors have increased their positions, with the total holdings now reaching $33.22 million.
According to CoinGlass's spot exchange Netflow data, spot market participants have led this trend, purchasing $31.44 million worth of BONK.
These tokens have been transferred to private wallets, indicating a long-term investment outlook, a move that has historically often preceded market rebounds.
Smart money investors have contributed $1.78 million. Nansen indicates that although the amount is relatively small, this funding represents the largest smart money inflow into the memecoin in the Solana ecosystem over the past week.
Historically, smart money holders of BONK are known for their profitable bets, suggesting that this capital influx may reflect expectations of an upcoming rebound.
Derivatives signal bullish sentiment
Derivatives traders have also joined the competition. As of this writing, the open interest weighted funding rate (OGR) remains above zero.
This positive value indicates that most active derivatives contracts are long positions. The funding rate is 0.0114%, meaning long traders need to pay a premium to maintain their positions.
AMBCrypto analysis shows that BONK has broken through a bullish chart pattern, with an upward target of $0.00003900.
However, two main resistance levels remain: $0.00003461 (which has rejected the price once) and the forthcoming $0.00003680.
Given the current accumulation rate, BONK appears to be in a favorable position to challenge these levels and may continue its upward momentum.
However, the biggest obstacle to a sustained bullish breakout remains the distribution across the entire market.
Distribution phase continues
The accumulation/distribution (A/D) ratio presents a stark contrast to BONK's outlook. Despite spot markets and savvy investors actively buying, the overall market remains in the distribution phase.
In just the past 24 hours, the total issuance of BONK reached 31.88 trillion, indicating that the number of tokens sold exceeded the number purchased.
As of the time of writing, the A/D indicator has slightly increased, suggesting that the distribution rate may be slowing. If this trend continues, BONK may regain its long-term bullish trajectory.
However, if distribution resumes its downward trend, even breaking through the current bullish chart pattern may suppress BONK's upward potential.
