BONK, the Solana-based meme coin, has taken the crypto market by surprise with a sudden 12% price jump in just 24 hours. This surge not only caught the attention of traders but also signaled a potential trend reversal after months of downward movement. Currently trading at $0.00001595, BONK is inching closer to a crucial resistance level at $0.00001900, and if that level flips into support, market analysts believe the token could climb as high as $0.00003257 — a staggering 108% gain from where it stands.

This recent breakout marks the end of a prolonged bearish pattern, with BONK finally breaking above its descending channel. While some may see this as a short-term spike driven by retail hype, the data behind the move tells a different story. A significant rise in Open Interest suggests that traders are entering the market with conviction, not just chasing momentum. Open Interest surged by 17.28%, reaching $23.68 million — a clear sign that new capital is being funneled into long positions. When Open Interest rises alongside price, it typically signals confidence in the asset’s future movement rather than speculative froth.

Adding to the bullish outlook, the funding rate — a metric used in futures trading to balance market sentiment — has turned positive for the first time in weeks. BONK’s OI-weighted funding rate currently sits at 0.0064%, showing that traders are paying a premium to hold their long positions. This shift in sentiment is particularly noteworthy because the funding rate had remained neutral or negative in recent weeks, indicating dominance by short sellers. A positive funding rate, especially one that remains at a sustainable level, often supports a continued rally without the risk of overheating the market.

Another important factor boosting BONK’s case is on-chain activity. In the last day, BONK has seen over $1.39 million flow out of centralized exchanges. This trend typically reflects a holding mindset among investors, suggesting they’re expecting further price increases and are choosing to secure their tokens in private wallets rather than keeping them on exchanges for quick trades. Reduced supply on exchanges usually translates to lower selling pressure, giving the price more room to rise.

Perhaps the most explosive catalyst lies in the growing pressure on short sellers. BONK’s current price zone is heavily packed with short positions, particularly between $0.01520 and $0.01650. Many of these trades are using high leverage — up to 25x in some cases — meaning even small price increases can trigger forced liquidations. If BONK continues to climb and these shorts are liquidated, it could create a domino effect, forcing more buy orders to cover positions and pushing the price even higher. This kind of short squeeze could be exactly what fuels a rapid surge past the $0.00001900 level and potentially toward the ambitious $0.00003257 target.

In summary, BONK’s 12% rally is being fueled by a combination of technical breakout, rising investor confidence, and favorable market mechanics. From increased Open Interest and positive funding rates to exchange outflows and looming short liquidations, multiple metrics are lining up in support of further gains. If BONK manages to hold above resistance and sustain its momentum, it could transform from a meme coin rally into one of the crypto market’s standout stories of the year.