The BONK token continues to trade near a key technical level, undergoing a test of the support level following the completion of an inverse head and shoulders pattern.
Testing Support Level After Breakout
BONK (BONK) is trading near a key level after completing an inverse head and shoulders pattern on the daily chart. The neckline of this 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 noted on platform X:
> "Pattern completion + neckline hold = 100% upside potential."
Drop in Derivative Market Activity
While the chart shows a bullish structure, broader market data reflects lower activity. Open Interest (OI) in BONK futures contracts is around $29 million, 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."
Institutional Monitoring
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. Currently, market participants are watching to see if BONK holds the neckline level and breaks above the flag structure, which could lead to a new upward move.
The BONK token continues to face resistance at the support level, and further market movements depend on trader activity and confirmation of bullish signals.
