Shiba Inu-Ecosystem Token Bone ShibaSwap (BONE) has experienced an incredible price surge of 88% in the past 28 days, since June 15. Last Saturday, the price rally temporarily halted at just under $1.50, meaning the Shiba Inu-based token has already seen an interim price increase of over 120%.
Since then, the BONE price has entered a consolidation phase. Looking at the 1-day chart of BONE, the price initially shot above the 50% Fibonacci retracement level but failed to defend the gains on a daily basis, eventually falling below resistance. Therefore, the $1.38 level is now the key resistance.
The current correction has resulted in the overbought daily RSI resetting from 81 to 61. However, further consolidation may be necessary to ignite further upside potential. A target for bears could be the exponential moving average (EMA) of the 100-day moving average and the 38.2% Fibonacci level in the range of $1.00 to $1.01.
After a potentially necessary reset of the technical indicators and another breakout above $1.38, the next targets would be the 61.8% Fibonacci retracement level at $1.50 and the 78.6% Fibonacci retracement level at $1.80, before reaching the all-time high of $2.10 from the end of February 2023.
The main reason for the current price rally of Shibaswap Bone (BONE) can be seen in the announcement of Shiba Inu’s chief developer Shytoshi Kusama regarding the launch of Shibarium next month. BONE will be the governance token of the highly anticipated layer-2 network and will also serve as a gas token.
As reported by NewsBTC, Kusama recently published a new blog post stating that Shibarium will likely be introduced at the Blockchain Futurist Conference. The conference will take place on August 15th and 16th in Toronto, Canada.
BONE will not only be the official governance token for Shibarium but will also be used for paying transaction fees (gas fees) on Shibarium. This gives BONE a significant utility it did not have before. Undoubtedly, this will increase the demand for BONE.
Traders may currently be trying to prioritize the news. In classic crypto fashion, the event could become a “buy the rumor, sell the news” event. Investors should therefore exercise caution.
Notably, while BONE is gaining strong momentum, Shiba Inu has fallen by -1.5% in the past seven days. The popular dog-themed cryptocurrency managed to break out of a multi-month downtrend channel, but is currently lacking the momentum to confirm the breakout. While BONE is benefiting from the Shibarium news, SHIB investors continue to remain skeptical and suffer from the delays in the network’s launch. The network’s release was originally scheduled for 2022.
Selected image from the MEXC blog, chart from TradingView.com