Technical indicators for BONE suggest the potential to break its long-term descending triangle amid renewed market interest.
BONE (the governance token of the ShibaSwap platform) has attracted market attention after weeks of downward pressure. The token's price rose by 5.07% with an increase in trading volume of 21.29% over 24 hours (according to CoinMarketCap data). The currency may see a bullish trend soon with buyers gaining control.
Technical analysis of BONE:
- The currency traded for months within a descending triangle on the daily chart, forming lower highs and lower lows.
- Currently, the currency is testing a critical resistance level at $0.29 at the descending trendline.
- A confirmed break above this level could push the price towards $0.40 and then $0.52 (previous resistance areas), targeting $0.75 in the medium term.
Future forecasts for BONE:
- Relative Strength Index (RSI):
- On the daily timeframe: 39 (oversold area).
- In the short term (4 hours): rose to 51 (neutral zone), indicating increasing buying pressure.
- MACD indicator and moving averages:
- Buy signals are showing on short to medium time frames.
- The funding rate weighted by open interest (OI) has turned positive, enhancing bullish expectations.
Two potential scenarios:
1. In case of a breakout:
- A strong rise could start if the price stabilizes above $0.29.
2. In case of failure:
- A drop to support at $0.26.
Traders are closely monitoring these levels, and with increasing buying volume, a successful breakout is expected.
Summary (4 key points):
1. Positive market performance:
- BONE price increased by 5.07% with a trading volume of 21.29% over 24 hours.
2. Break of critical resistance:
- Testing the $0.29 level after a long trade within a descending triangle.
- Breaking through this level could push the price to $0.40 and then $0.75 (medium-term target).
3. Bullish technical signals:
- RSI indicator improved to the neutral zone (51).
- Buy signals from MACD and short moving averages.
4. Potential risks:
- A failed breakout could lead to a drop to $0.26 (immediate support).
- The current buying volume enhances the likelihood of an upward movement.
