BONK breaks descending channel with 11% spike — reversal or short-squeeze risk?
BONK surged 11.5% to $0.0000057189 on Feb. 15 as trading volume jumped 157%, breaking above the upper boundary of a long-term descending channel and reclaiming the $0.00000557 support zone. Market cap stood near $632.7M while Open Interest rose 13.4% to $7.63M and OI-weighted funding remained negative (-0.0143%), indicating crowded short positioning. Exchange netflows showed roughly $870K of net outflows, suggesting accumulation and reduced sell-side liquidity. Technicals: daily RSI recovered to ~45.4 (from low 30s); key pivots are immediate resistance at $0.00000743, upside targets near $0.00001221 and $0.00001361 if support holds. Risk factors: rising leverage and expanding open interest increase the chance of a volatility squeeze if shorts cover, but failure to defend reclaimed support could trigger sharp deleveraging. For traders: treat the breakout as a tentative shift toward bullish structure but watch funding, OI, exchange flows and the $0.00000557–$0.00000743 zone for confirmation; position sizing should account for heightened short-cover risk and possible rapid reversals.
Bullish
The article presents a structural breakout: BONK cleared the descending channel with volume +157% and RSI recovering from oversold, which shifts short-term technical bias toward bullish/reversal territory. Exchange outflows (-$870K) indicate accumulation and reduced sell-side liquidity — a condition that often supports price appreciation. However, derivatives data show rising Open Interest (+13.4%) and negative funding (-0.0143%), meaning many traders are short and pay funding, creating a crowded-short setup. Historically, such conditions can amplify rallies via forced short covering (e.g., memecoin squeezes) but also produce violent reversals if momentum fails. Therefore the expected impact is bullish conditional on price holding reclaimed support (0.00000557–0.00000743). For short-term trading, this suggests elevated upside potential and higher volatility — traders should watch funding, OI, and exchange flows for squeeze signals and use tight risk management. For longer-term outlook, a sustained recovery requires continued structural follow-through (higher highs, sustained OI without destabilizing leverage) and improvement in on-chain metrics; otherwise, the move risks being a leveraged relief rally followed by unwind.