BONK Breaks Its Downtrend as XRP Shrugs Off ETF Shock

Sean Williams
BONK

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  • BONK has exited a multi-month downtrend, signaling a potential trend reversal.
  • Institutional activity is adding credibility to both BONK and XRP narratives.
  • XRP ETF inflows remain positive despite short-term regulatory headlines.

The crypto market is showing early signs of renewed risk appetite, with both meme coins and large-cap altcoins drawing attention for different reasons. BONK, a Solana-based meme token, has flipped its technical structure for the first time in months, while XRP has stabilized after a brief shock tied to ETF headlines. Together, the moves highlight how sentiment is shifting across very different corners of the market.

BONK Signals Its First Trend Shift Since Mid-2025

BONK has pushed decisively out of a long-standing descending channel on the daily chart, marking its first clear trend change since a distribution phase that began in mid-2025. The breakout followed a strong rebound from a well-defined demand zone near the lower boundary of that channel.

From a technical perspective, former support around $0.0000070 now acts as the key area to defend. A sustained hold above this zone would reinforce the bullish structure. Failure, however, could reopen the door to a deeper retracement.

On the upside, traders are watching the prior supply region near $0.000020. A clean break above that level could unlock momentum toward the $0.000040 resistance band. Momentum indicators support the bullish case so far, with RSI trending higher and MACD signaling fresh expansion rather than exhaustion.

Institutional Activity Adds Credibility to BONK’s Setup

Beyond charts, BONK has also benefited from an unusual institutional tailwind. Canadian-listed TenX Protocols recently expanded into the Solana ecosystem and added BONK to its crypto treasury strategy.

Following a public listing and a capital raise exceeding $30 million, the firm accumulated roughly 220 billion BONK tokens through a mix of market and OTC purchases. While this doesn’t guarantee sustained upside, it adds a layer of legitimacy rarely seen in meme coin markets.

Still, expectations should remain grounded. A 100x rally is highly improbable given BONK’s massive supply, which would require unprecedented capital inflows. That said, further upside moves remain possible if momentum holds.

XRP Rebounds as Institutional Testing Continues

XRP, meanwhile, turned higher on Jan. 9 after briefly dipping to the low $2 range. The pullback followed news that WisdomTree withdrew its spot XRP ETF filing, but selling pressure faded quickly. At the time of writing, XRP trades near $2.14, up roughly 14% over the past week.

Supportive headlines emerged when Evernorth announced a collaboration with Doppler Finance to test institutional liquidity and treasury activity on the XRP Ledger. While no products are launching yet, the firms are evaluating how large-scale XRP deployments could function on-chain.

Also Read: BONK ETF Delay Amid Dogecoin Rally Signals Rising Memecoin Momentum

ETF flows have also remained constructive. XRP-related spot ETFs have seen net outflows only once since launch, with total net inflows reaching $1.21 billion.

BONK’s breakout and XRP’s rebound reflect a market that is cautiously rotating back into risk. While the assets appeal to very different audiences, both are benefiting from improving technical structures and institutional engagement. The key question now is whether momentum can turn short-term strength into a sustained trend.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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