One of the tokens included in the Shiba Inu space, is ignoring the ongoing bear market and decides to attack its ATH. What is causing the BONE rally and can it last longer? Let’s find out!
A token with a significant application
While SHIB at the time of this writing is nearly 85% below its ATH, BONE is surging ahead. Tokens that are strongly correlated with each other, most often record common rallies, and their prices are sometimes proportional. In this case, we do not observe a similar phenomenon.
Thus, we see a relatively weak SHIB, which occasionally records very decent rallies. However, its price action is currently closing in consolidation. The situation of BONE is absolutely different, making the token definitely break through the $1.00 level.
This may be due to the application of BONE. This is because it is a token that manages the Shibaswap ecosystem. Thus, it allows supporters of Shiba Inu to vote for the proposals presented by the developers for further development. The more BONE a given user has, the more weight his or her vote carries, and consequently the more significant impact on the future of the Shiba Inu space.
Serious reasons for increases
In order for increases to occur, the right ground for them is essential. Especially when we are talking about an attempted attack on the new ATH. And this is exactly what is happening with BONE. The token is supported by information coming from the Shiba Inu camp. Here we learn that a detailed documentation of Shibarium will see the light of day as early as next month. A public test base is also set to be released. It is this event that is causing great tension in the market, because as it turns out, BONE is to be a gas token, finding application in the second layer of SHIB. Such information gives grounds for a bullish attitude.
Shibarium aims to provide faster and much more scalable transactions than has been the case so far. We have managed to write a great deal about it already. If you haven’t had time to read our articles yet, regarding the development of Shiba Inu, we encourage you to use the magnifying glass at the top of the screen and learn more.
What lies ahead for BONE?
Looking at BONE’s chart, we see clearly rising trading volumes. Such an environment is favorable for further increases. Meanwhile, the RSI temporarily found itself in an overbought zone, resulting in a correction from the $1.20 level reached on August 5. However, we do not see any bearish divergence. A weakening MACD may be a worrisome signal, but it is too early to forecast a trend reversal based on it.
The highest level that BONE has managed to reach in its history was $1.2586. Consolidation under this area is currently underway. Opportunities for a new ATH therefore seem significant.