BONK’s Mixed Signals: Time to Buy, Short, or Wait on the Sidelines?

Memecoin mania meets market mayhem as BONK flashes contradictory patterns. Bulls see a dip-buying opportunity—bears smell a dead-cat bounce.

The Bull Case:
On-chain metrics show accumulation by whales, while exchange reserves hit a 3-month low. Retail FOMO could trigger a squeeze.

The Bear Trap:
Daily RSI remains overheated at 68 despite the pullback. Open interest suggests leveraged longs are still overextended.

Sideliner’s Edge:
With BTC dominance climbing and memecoin volumes drying up, patience might outperform both positions. As always in crypto: the ‘smart money’ is probably the one that already exited.

Source: BONK/USDT on TradingView

The weekly chart showed a bearish swing structure. The swing points were at $0.00000258 and $0.0000114. A MOVE beyond the former resistance level will signal a bullish outlook for BONK in the higher timeframes.

As things stand, a bullish argument was not feasible on the weekly timeframe.

The price action showed the first sign of a trend shift with a higher low in June, compared to March, but it was not a definitive sign. The OBV has been moving sideways since March.

The volume indicator revealed the lack of consistent demand behind BONK, which could hurt the chances of a sustained rally.

The weekly RSI was also below neutral 50, and has been throughout 2025, barring a couple of weeks in May. This was another sign of bearish dominance.

The RSI was at 49.86 at the time of writing, and a move above neutral 50 could be the first sign of a momentum shift.

The 1-day BONK chart offers more hope

Source: BONK/USDT on TradingView

While the weekly swing structure was bearish, the 1-day swing structure turned bullish after the gains made on Saturday, the 5th of July.

The OBV made a new high compared to June’s high, while the RSI also shot above neutral 50. Together, the volume and momentum indicators signaled bullishness for the meme coin.

BONK also exhibited a bullish market structure break on the daily chart, made on the 28th of June.

Combined with the higher lows the token made over the past ten days, it was a sign that BONK bulls were gaining strength.

The local high has been reached, and traders can look to exit their long positions at a profit. A bearish market structure shift on the 4-hour chart could give traders the next swing trade opportunity.

The more likely outcome, due to the increased trading volume during the rally, was a continued move higher. Traders can wait for the $0.0000183 level to be flipped to support before going long.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion