BONK Meme Coin Returns to Starting Point After Experiencing Back-and-Forth Price Action Throughout May

Solana's popular meme coin BONK has returned to where it began the month after experiencing back-and-forth price action throughout May.

Solana’s popular meme coin BONK has returned to where it began the month after seeing ping-pong price action throughout May. The token is now attempting to stabilize above the 200 EMA after encountering resistance near the $0.00002581 level, which pushed it back from around $0.00001820.

Technical analysts suggest that this pullback isn’t signaling a bearish reversal but rather forming a bullish continuation pattern that could lead to a 77% corrective move upward.

This recent price retracement has brought BONK to an area of strong technical interest. The 200 EMA on the 4-hour chart may serve as the next support zone for the token. This retracement also coincides with the 0.618 Fibonacci level, often a point of technical divergence that favors bullish corrections.

Since May 15, the price has been consolidating between the daily support zone at $0.00001832-$0.00001841 and the resistance zone at $2034. According to analysts on TradingView, the price structure suggests buyers are stepping in to defend the trend, forming a higher low.

Volume analysis reveals that each upward impulse has displayed increasing volume since early April. The recent decline occurred on diminishing volume, which may indicate seller exhaustion.

Despite the current range-bound action, BONK remains within a bullish setup that could potentially drive it toward new 2025 highs and possibly toward its all-time high levels.

The key level to watch is the point of control (POC) resistance at approximately $0.00001955. This level previously acted as a pivot point before the pullback and now serves as the threshold for bullish continuation.

A confirmed close above this region could trigger a rapid move toward the next resistance cluster around $0.00002581, before potentially reaching the predicted target of $0.00003243. This would bring it close to its January 2025 open of $0.000035, representing a 77% rally from current levels.

At the time of writing, BONK is trading at $0.00002041, showing a 5.32% increase over the past 24 hours. Its behavior just above the POC will be crucial. If buyers maintain pressure and secure a decisive breakout, conditions could be set for a strong rally toward upper resistance levels and a retest of BONK’s 2025 swing high.

On-chain data supports the bullish case. BONK has recorded $14.18 million in inflows compared to $12.91 million in outflows, creating a net inflow of over $1.27 million. This highlights growing accumulation pressure, suggesting more tokens are being held rather than sold.

Derivatives markets are also showing increasing interest, with volume rising 26.41% to $60.75 million, while Open Interest increased 15.81% to $23.86 million. This suggests traders are positioning for a significant move, likely anticipating a confirmed breakout.

The shift in BONK’s funding rate further supports the bullish outlook. The OI-Weighted Funding Rate is positive at +0.0091%, confirming a long-heavy sentiment among traders.

Liquidation levels on derivatives exchanges also provide insight. The liquidation heatmap reveals a dense cluster of short liquidation levels around $0.000021 and above. If BONK pushes through this area, it could trigger a cascading squeeze as trapped shorts are forced to close positions.

Social metrics have decreased since late April, with social dominance dropping to 0.056%. However, this reduced hype may indicate a consolidation phase where market structure takes precedence over speculative chatter.

As long as inflow dominance and trader confidence remain intact, BONK’s price action should stay favorable. If it manages to break above the crucial $0.000021 liquidation cluster, a rapid climb toward $0.000025 becomes increasingly likely.