Key Highlights
Spot and smart investors have removed over $33 million worth of BONK from the market, putting pressure on the ongoing rally.
BONK has shown strong bullish momentum, with a 38% increase in the past week and indications of further growth.
Despite increased accumulation, market-wide distribution continues to impact BONK’s price as it approaches a potential breakout.
Continued Investor Accumulation
In the recent week, BONK investors have ramped up their accumulation, totaling $33.22 million.
Spot market participants led the way, buying $31.44 million worth of BONK, as per CoinGlass’ Spot Exchange Netflow data.
Source: CoinGlass
These tokens were transferred to private wallets, indicating a long-term investment strategy, a trend often seen before market rallies.
Smart Money investors also contributed $1.78 million, the largest inflow for any memecoin in the Solana ecosystem in the past week, according to Nansen.
Derivatives Point to Bullish Sentiment
Derivative traders are joining the fray, with the Open Interest Weighted Funding Rate staying above the positive threshold.
The positive reading indicates most active derivative contracts are long positions, with long traders paying a premium to hold their positions.
Source: CoinGlass
AMBCrypto analysis suggests BONK has broken out of a bullish chart pattern, targeting $0.00003900.
However, resistance levels at $0.00003461 and $0.00003680 pose challenges to the upward movement.
Source: TradingView
With the current accumulation rate, BONK seems well-positioned to surpass these levels and extend its rally.
However, market-wide distribution remains a key obstacle to a sustained bullish breakout.
Ongoing Distribution Phase
The Accumulation/Distribution (A/D) ratio paints a mixed picture for BONK, with continued market-wide distribution despite increased buying.
In the last 24 hours, total distribution volume reached 31.88 trillion BONK, signaling more tokens are being sold than bought.
Source: TradingView
The A/D metric has slightly improved, hinting at a slowdown in distribution. If this trend continues, BONK could resume its bullish trajectory.
However, a resumption of distribution could hinder BONK’s upward movement, even if it breaks out of its current bullish formation.
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