BONK Caught in Bearish Flag Formation as Bears Hold $0.000001025 Defense

BONK continues to face sustained selling pressure, with the token trapped in a bearish flag pattern on its daily timeframe. The cryptocurrency has struggled to mount any significant recovery, as market structure deteriorates with each failed bounce attempt. Lower highs and consecutive lower lows dominate the chart, signaling persistent bearish momentum that leaves little room for optimism in the near term.

Technical Structure Favors Downside Continuation

The bearish flag pattern that BONK has formed remains the critical pattern to watch. This consolidation structure typically precedes trend continuation rather than reversal, meaning traders should prepare for potential downside extension. Price currently trades around $0.00000094, well below the immediate resistance zone at $0.000001025—a level that technical analysts view as critical for shorting opportunities.

Should BONK attempt to reclaim $0.000001025, the move would likely encounter strong overhead supply. Beyond this level lies a series of progressively higher EMAs: the 20-day EMA at 0.00000097, the 50-day at 0.00000114, and the 100-day at 0.00000141. The 200-day EMA sits considerably higher at 0.00000168, establishing a formidable ceiling that reinforces the longer-term bearish structure.

The alternative scenario—a sharp break below current support—would confirm the bearish flag pattern and potentially unlock further downside movement. Either way, the technical setup favors bears over bulls.

Indicators Paint a Weak Picture

BONK’s momentum indicators align with the bearish technical picture. The MACD remains entrenched below the zero line, with the histogram showing only marginal positive movement near 0.00000014. This suggests downside momentum is losing steam but has not reversed into bullish territory. The 20-day EMA acting as immediate resistance at 0.00000097 creates an additional headwind for recovery attempts.

The subdued nature of these signals indicates that bulls lack the strength to initiate a sustained recovery. Without a convincing break above key resistance levels and positive indicator divergences, the path of least resistance remains downward.

Volume and Open Interest Signal Caution

Recent derivatives data reveals concerning weakness in market participation. Trading volume for BONK dropped 51.28% to approximately $20.62 million, while open interest declined 2.63% to $8.91 million. This combination points to position unwinding rather than fresh accumulation, a bearish signal during periods of downward price pressure.

The OI-weighted funding rate remains subdued at 0.0064%, indicating limited long-side leverage positioning. This data reinforces the view that traders have grown cautious, with many likely covering longs or avoiding fresh positions altogether.

What’s Next for BONK?

With BONK trading within a bearish framework supported by multiple technical and on-chain indicators, the near-term bias remains skewed toward lower prices. The bearish flag pattern suggests consolidation before potential further downside, while the $0.000001025 resistance zone represents a critical level where short opportunities could emerge.

Unless BONK can orchestrate a decisive break above this resistance with renewed volume and positive indicator signals, the technical setup continues to favor sellers over buyers.