BONK is showing potential for a bullish reversal as its price forms a falling wedge pattern, traditionally indicating weakening bearish momentum. However, a treasury-linked wallet continues to sell large amounts of the token, creating uncertainty. Traders are watching for a confirmed breakout with high volume, though ongoing whale sales may limit upward movement. The token is currently trading at $0.000002803, down nearly 6% in the last 24 hours.
BONK is exhibiting a potential bullish reversal as its price compresses inside a falling wedge pattern, a formation widely viewed as a signal of weakening bearish momentum. Repeated support holds indicate buyers remain active, while declining selling pressure suggests the market may be preparing for a trend shift.
According to crypto analyst Crypto With Gopal, traders are looking for a breakout above the wedge’s upper resistance, with heavy volume accompanying the move as evidence of new buying interest. Such a breakout might be followed by a bullish reversal toward $0.00000350, though BONK would first need to exit its current accumulation stage.
Data from Lookonchain highlighted that a wallet, which has lawfully obtained 4.4 trillion BONK from the project’s treasury, has sold another 800 billion tokens. This latest sale has raised further concerns among traders who believe constant liquidations could hinder any recovery attempt by BONK.
The massive treasury sell-off has already placed a heavy burden on BONK’s performance, with the token trading 40% below its level at the beginning of July. Even after numerous sales, a significant amount remains in the wallet, keeping traders focused on any on-chain activity.
Following the strong whale selling, BONK’s price is moving in a downward direction. However, the general trend in the broader crypto market remains neutral, and a breakout by Bitcoin’s price could also impact BONK’s recovery toward new highs.
