Meme coins have been popular for years and the community around these coins has held strong. Dogecoin and Shiba Inu are prime examples, but meme coin critics will point towards a lack of utility for these coins. The Shiba ecosystem has addressed these concerns with the rise of the ShibaSwap [BONE] and Doge Killer [LEASH] tokens. BONE is a governance token that allows holders to propose and vote on changes to the ShibaSwap protocol.
ShibaSwap is a decentralized exchange (DEX) native to the Ethereum blockchain for the Shiba Inu project and an integral part of Shibarium. According to DefiLlama, it had a TVL of $28.8 million and its governance token had an FDV of $217.5 million at press time. It is a fork of the SushiSwap DEX, which had originally forked from Uniswap. Together with SHIB, BONE, and LEASH tokens, ShibaSwap also offers staking, liquidity pools, and yield farming services.
Read Bone ShibaSwap’s [BONE] Price Prediction 2023-24
Over the past two weeks, Shiba Inu has been on a downtrend after the rejection at the resistance above $0.0000117. It was trading at the $0.00001 support at press time but more losses cannot be ruled out. Bitcoin oscillated from $27.2k to $30k over the past two weeks as well, which meant the altcoin market might not see a strong trend until BTC can move past these levels.
What are the prospects of BONE in the coming weeks, and what can traders and investors watch out for?
The trend was firmly south, but there is some hope for the bulls
The 12-hour chart for BONE showed the token was on a downtrend since late February. The market structure was firmly bearish, with the recent lower high at $1.16. This was registered on 25 April but BONE has been unable to close a trading session above the $1.09-resistance. At the same time, the $0.89-support level was defended upon the retest on 1 and 2 May.
The OBV also noted a bounce during this retest, which showed some demand at the support level. However, the RSI has been below neutral-50 for the majority of the last two months, which suggested a longer-term downtrend. This is yet to be broken.
How much are 1, 10, or 100 BONE worth today?
The OBV did not have a trend since March. While it did see some gains in March, it slowly bled lower in April. Therefore, the inference is that despite the downtrend on the price charts, neither bulls nor bears had the upper hand while BONE traded within the $0.9-$1.1 area.
Another observation is that BONE could form a range between the resistance and support at the $1.09 and $0.89 levels. The formation of a range could signal that the longer-term bottom could be in for BONE. This, supported by evidence from activity on the chain.
On-chain metrics showed BONE accumulation behind the scenes
Despite the gloomy outlook on the price charts, the on-chain metrics showed that bulls were not dissuaded. Since mid-March, the mean coin age has been on the rise. This indicated network-wide accumulation. There was a sharp drop on 23 April, which was accompanied by a sharp spike in the 90-day dormant circulation. While this showed increased token movement within the network, it was not seller dominance as the price was rising at that time.
But this was followed by a rejection from the $1.1 resistance. Despite the retracement to $0.9, the mean coin age resumed its previous uptrend. Exchange outflows also saw significant surges over the past two weeks, which indicated the likelihood of accumulation from whales.
Therefore, in the coming weeks, it is possible that Bone ShibaSwap bulls could initiate a rally, provided Bitcoin does not see a huge wave of selling.
Shiba Inu is also within a phase of accumulation – Can the market rally by 15% in May?
Shiba Inu has traded within a range as well. Unlike BONE, SHIB has ranged from early March. At that time, BONE was still on a downtrend. This was one of the few times over the past six months that the trends of BONE and SHIB were not in tandem.
Generally, both the assets moved in lockstep on the price charts, although the magnitude of the moves was different. With Shiba Inu at the $0.00001 range lows, it is now or never for SHIB bulls to mount a comeback.
The RSI was below neutral 50, and the market structure was bearish for SHIB as well. Yet the CMF has climbed somewhat over the past week, although it still did not show significant capital inflows with a reading greater than +0.05. If that occurs, Shiba Inu could begin to climb higher due to rising demand.
In turn, this could spur BONE on a bullish run as well. The next significant resistance is close to 20% to the north for Bone ShibaSwap and could present swing traders with an opportunity to buy the asset.