Shiba Inu Ecosystem Token BONE Surges 88%, Is it Too Late To Buy?

The Shiba Inu ecosystem token Bone ShibaSwap (BONE) has had an astounding 88% price growth within the previous 28 days, since Jun 15. The Shiba Inu-based token has already seen an interim price increase of more than 120% as of last Saturday, when the price rally temporarily halted at just under $1.50.

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Since then, the BONE price has been in a consolidation. Looking at the BONE 1-day chart reveals that the price initially surged over the 50% Fibonacci retracement level, but that it was unable to hold the gains over the course of the day and ultimately dropped below the resistance. As a result, the key barrier is at the $1.38 level.

The latest pullback has led the overheated daily RSI to reset from 81 to 61. However, additional consolidation might be required to spark additional upside potential. A target for bears could be the 100-day exponential moving average (EMA)and the 38.2% Fibonacci level in the $1.00 to $1.01 range.

Associated Reading Shiba Inu (SHIB) Breakout Alert: Potential 30% Rally Looming

After a potentially 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 then be the next targets before the all-time high of late February 2023 at $2.10 would be within reach.

Shiba Inu: Motives Behind The BONE Price Increase

The fundamental cause for the present surge in the price of Shibaswap Bone (BONE) may be seen in the announcement by Shiba Inu chief developer Shytoshi Kusama on the debut of Shibarium next month. The much-anticipated layer 2 network will include BONE as its governance token, which will also act as a gas token.

According to a recent blog post by Kusama, which was covered by NewsBTC, Shibarium will “likely” be presented at the Blockchain Futurist Conference. The conference will be held on August 15 and 16 in Toronto, Canada.

Related Reading: Shibarium Release Date Revealed, SHIB Up 3%, Shiba Inu Lead Developer Announces

The BONE token will then serve as Shibarium’s official governance token as well as the means of paying for any transaction fees (such as gas fees). BONE will thus gain a fantastic utility that wasn’t present before. Without a doubt, this will result in a rise in bone demand.

At this time, traders might try to beat the news. In classic crypto fashion, the event could become a “buy the rumor, sell the news” event. Investors should exercise caution as a result.

Worth noting: While BONE is rallying strongly, Shiba Inu has fallen -1.5% in the last seven days. Although the well-known cryptocurrency with a canine theme was able to exit a multi-month downtrend channel, there is not yet enough momentum to support the breakout.