Bone ShibaSwap, a meme coin ranked fourth on the list of meme coins by market cap, has been on an impressive rally since June. The cryptocurrency has shown significant bullish momentum, but there are concerns about whether it can reach the $2 mark by the end of 2023. In this article, we will explore the driving forces behind Bone ShibaSwap and analyze its potential to reach this price target.
The Bullish Trend of Bone ShibaSwap
Since mid-June 2023, Bone ShibaSwap has been experiencing a strong bullish trend, with its price rising from $0.69 to $1.8242, indicating positive market sentiment and investor interest. In July, the cryptocurrency was stuck in a consolidation zone between $1.2250 and $1.3750, but gained momentum to break the resistance level and rise toward the $2 mark, indicating potential future price appreciation.
The Driving Force Behind Bone ShibaSwap’s Price Surge
Shiba Inu’s lead developer, Shytoshi Kusama, plans to mint the remaining supply of Bone and close the BONE contract to prevent further creation. This move aims to solidify operations on the Layer-2 blockchain, Shibarium, set to launch in August 2023. Shibarium will be operated by validators who own a large number of Bone supply. Bone will become the “Passport To The Future,” allowing users to receive rewards on the newly launched blockchain.
Technical Analysis of Bone ShibaSwap
From a technical standpoint, Bone ShibaSwap’s price trades above the 20, 50, 100, and 200-day exponential moving averages (EMAs) against USDT. This indicates sustained bullish momentum in the market. The 20-day EMA has acted as a support level for the price, further reinforcing the positive trend.
The Chaikin money flow score, which measures the flow of money in and out of an asset, is above the zero mark and currently trades at 0.05. This suggests strength in the market and a continuation of the bullish sentiment.
However, the relative strength index (RSI) has recently dropped below the overbought zone, indicating an increase in the participation of bears and the possibility of a short-term pullback. Additionally, the Bollinger Bands have expanded, implying increased volatility. As the price reached the upper band, signs of a short-term pullback have emerged.
Potential Scenarios for Bone ShibaSwap
Scenario 1: Correction and Support Retest
There is a possibility that Bone ShibaSwap’s price might enter a corrective phase and melt toward the $1.50 psychological level. If the price successfully breaks the previous candle’s low, which closed as a bearish candle, it could further decline. However, if the price finds support near the $1.6230 support level, there is a potential for a retest of the recent resistance level at $1.745 and a potential rise above the all-time high.
Scenario 2: Resistance Near $2 Level
Despite the bullish trend, there is heavy resistance near the $1.9-$2 levels. The higher timeframe charts suggest that reaching the $2 mark could be challenging for Bone ShibaSwap. If the price fails to break this resistance level, it could result in a significant retracement.
Conclusion
Bone ShibaSwap is experiencing a bullish trend due to the development of Shibarium and the closure of the BONE contract. The price could reach $2 by 2023, but heavy resistance poses challenges. Investors should closely monitor the market and consider potential scenarios like a correction, support retest, or failure to break the $2 resistance level. Thorough research and risk consideration are essential.
