An almost identical solution is given on the wiki 
(http://wiki.contextgarden.net/Cropping_text)

Bostjan

>> \starttext
>>
>> \def\breakeverywhere#1{\if#1\normalspace\space\else#1\allowbreak\fi}
>>
>> \framed
>>  [width=4cm,align=normal]
>>  {\handletokens i want a framed where the text flushes to the next line
>> without hyphenation. There is a way to get this
>> result?\with\breakeverywhere}
>>
>> \stoptext
>>