BONK: After a $11.4 mln sell-off, can the memecoin beat January highs?

Key Takeaways

BONK has surged nearly 140% off support, showing strong resilience despite whale sell-offs and overbought technicals. Structure suggests a potential short squeeze setup.

Roughly $30 billion has flowed into the memecoin space this month, pushing the total market cap past $80 billion for the first time since the election. 

It’s no surprise OGs are breaking past key resistance levels. However, Bonk [BONK] has clearly led the charge, ripping nearly 140% off its $0.000012 support zone.

That said, the move’s been sharp and fast. That run-up played out over just two weeks, leaving the RSI overheated and price action looking stretched. Hence, classic signs of a market that might be due for a breather.

Source: TradingView (BONK/USDT)

Adding to caution, Galaxy Digital transferred 330 billion BONK tokens, worth around $11.4 million, to Binance. In fact, this move is part of a larger $30 million position they accumulated on the 18th of July.

And yet, despite the sizable sell-off, BONK’s price showed solid resilience, rallying 1.18% the following day. That said, does this technical divergence signal a strategically engineered bear trap forming beneath the surface?

Is BONK’s uptrend still intact?

Technically, BONK’s sitting right at an inflection point. 

After ripping to $0.000040 with a triple-digit run, it’s been chopping sideways for a week, either gearing up for a fresh leg higher or setting the stage for a liquidity sweep.

That said, sentiment’s still bullish and whale wallets haven’t flinched. The recent pullback looks more like a leverage reset, with Open Interest down 3.75% after tagging a record $74 million. 

Source: CoinGlass

If the structure holds, BONK could be primed for a textbook short squeeze, liquidating late-positioned shorts and using the current trap as fuel. 

This will give BONK the momentum to crack the $0.000040 supply wall, a level it hasn’t seriously challenged since January.