Overall, selling positions formed more than buying positions, with the highest cumulative leverage to liquidate selling positions at $0.00002100.

BONK is making headlines now after breaking its significant descending wedge pattern, which extended from late December 2024. This hinted at the potential for a shift to a new market trend on the charts.

BONK's price movement and predictions

In-depth analysis revealed that BONK experienced a significant breakout from its consolidated range, a range it had failed several times before. This ultimately led to its price reaching $0.00002011 at the time of publication.

To confirm this breakout, BONK needs to stay above the $0.00002000 area, with the upper bound of the pattern remaining as a support level. The initial barrier for a larger bullish trend was at $0.00003, with the main target near $0.00006193, which aligns with the peak of Q4 2024.

The MACD indicator has highlighted strong bullish signals, with its line stabilizing at $0.00000121 above the signal line at $0.00000082, showing an upward trend on the chart.

BONK

Source: TradingView

This indicates that buyers may maintain their dominance while achieving further gains, provided that traders show sufficient buying strength. However, BONK is likely to revisit the previous wedge resistance level near $0.00001500, especially if the price fails to maintain any stability above $0.00002000.

Failing to maintain the support level at $0.00002000 will raise doubts about the validity of BONK's breakout structure. This could push the price down toward the $0.00001000 area.

Closing BONK's price above $0.00002000 consistently may bolster confidence in further price increases. In the event of a rejection, bulls will need to protect the lower support levels from another extended bearish market.

Increase in leveraged positions, trading volume, and OI index

Additionally, more traders have been accumulating short positions, with BONK valued at $0.00002014. The total accumulated short leverage reached the $0.00002100 area, slightly above the market price, while the value of short contracts exceeded $5 million.

However, long-term trader activity has remained cautious during price declines. This is due to their cumulative liquidation leverage reaching the $0.00001900-$0.00001960 range, which is relatively low compared to short-selling contracts.

A price rise above $0.00002100 could trigger a wave of short liquidations, accelerating the market's rise to $0.00002200.

Source: Coinglass

Early buying positions are likely to fail, and the price will see an increase in pressure. Especially if BONK's share price falls below $0.00001900, leading to further market withdrawals.

Overbought positions indicated that while traders anticipated a drop, breaking through resistance could lead to strong pressure on short positions. The next move for BONK shares depends on volatility, as both long and short traders have built strong opposing positions.

Source: Coinglass

At the same time, the open interest (OI) volume for BONK shares at a price of $0.021 reached $267.61 million, with a trading volume of $659.60 million. While the open interest volume has risen from mid-April levels of around $150 million, the trading volume has remained consistently low.

This divergence could reflect speculative positions that are not entirely based on a solid conviction. This may help stimulate volatility if the price moves in either direction.