BONK Targets 100% Rally After Neckline Retest Begins

TL;DR

• BONK retests neckline support after breakout, holding near flag resistance and possible breakout zone.
• Open Interest drops from $73M to $29M, showing traders remain cautious despite a bullish setup.
• Price trades above 200-day average as RSI stays neutral, signaling balanced momentum on the chart.

Breakout Retest at Neckline Level

Bonk (BONK) is trading near a key technical level after completing an inverse head and shoulders pattern on the daily chart. The neckline of the pattern, located around $0.00002, was broken earlier this month. The token is now retesting this level, which may act as support if buyers step in.

Analyst Jonathan Carter posted on X:

“Pattern completion + neckline hold = 100% upside potential.”

https://twitter.com/JohncyCrypto/status/1960310934469038393?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank

He pointed to upside targets at $0.000024, $0.000030, $0.000037, $0.000041, and $0.000052. BONK was priced at $0.000021 at the time of writing. It has gained 5% in the last 24 hours but is down 2% over the past seven days. Daily trading volume stands at over $225 million.

After the neckline breakout, BONK formed a bullish flag, a consolidation pattern that can lead to another move higher if broken to the upside. The token is now testing the upper edge of that flag.

BONK is trading above the 200-day moving average, which is a sign of long-term strength. The Relative Strength Index (RSI) is neutral, which means the current price is balanced in terms of demand and supply.

Derivatives Market Points to Caution

While the chart shows a bullish structure, broader market data reflects lower activity. Open Interest (OI) in BONK futures contracts is around $29 million, according to CoinGlass, down from a peak of $73 million in July. The decline in OI suggests lower participation and reduced risk appetite among traders.

Analyst @AltwolfCrypto commented:

“Bullish only on reclaim of 1D 200EMA + .000022$… We’re down 50%+ in a heavy downtrend.”

He noted that the price needs to move above key levels before a shift in trend can be confirmed.

Institutional Monitoring and What’s Next

Last month, BONK was added to Grayscale’s tracking list. While this does not signal investment, it puts the token on the radar of institutional traders.

For now, market participants are watching to see whether BONK holds the neckline level and breaks above the flag structure, which could lead to a new upward move.