The Shiba Inu token ecosystem Bone ShibaSwap (BONE) has seen a staggering 88% price increase over the last 28 days, since June 15th. The token has already seen a temporary price increase of more than 120%.
Since then, BONE price has been consolidating. A look at the 1-day chart of BONE shows that the price initially broke out above the 50% Fibonacci retracement level, but failed to defend the gains on a daily basis and eventually fell below the resistance. Therefore, the $1.38 level is the main resistance.
The current correction has caused the frantic daily RSI to reset from 81 to 61. However, further consolidation may be required to ignite more upside potential. The 100-day exponential moving average (EMA) and the 38.2% Fibonacci level in the $1.00 to $1.01 range might be a bear target.
After a possible necessary reset of technical indicators and another breakout above $1.38, the 61.8% Fibonacci retracement level at $1.50 and the 78.6% Fibonacci retracement level at $1.80 would be the next targets ahead of the all-time high in late February 2023 at $2.10. to be on hand.
Shiba Inu: Reasons for the high price of bones
The main reason for the current hike in the price of Shibaswap Bone (BONE) can be seen in Shiba Inu Chief Developer Shytoshi Kusama’s announcement that Shibarium will be launching next month. BONE will be the governance token for the highly anticipated Layer 2 network and will also act as a gas token.
As reported by NewsBTC, Kusama published a new blog post last week stating that it was “likely” that Shibarium would be revealed at the Blockchain Futurist conference. The conference will be held on August 15th and 16th in Toronto, Canada.
Then BONE will not only be Shibarium’s official governance token, but it will also be used for any payment of transaction fees (gas fees) in Shibarium. Thus, BONE will get a great benefit that was not there before. Undoubtedly, this will increase the demand for bones.
Currently traders may try to bring the news to the fore. In the classic coding pattern, the event could become a “buy the rumor, sell the news” event. So investors should be careful.
It should be noted that while BONE is rising strongly, the Shiba Inu has fallen by -1.5% in the past seven days. The popular dog-like cryptocurrency has managed to break out of a multi-month downtrend channel, but it is currently lacking momentum to confirm the breakout. While BONE benefits from the Shibarium news, it appears that SHIB investors remain skeptical and suffer from launch delays. The network was originally scheduled to launch in 2022.
Featured image from the MEXC blog, chart from TradingView.com