BONE’s technical setup signals a breakout above its long-term descending triangle amid renewed market interest.
BONE, the governance token used in ShibaSwap, has caught the market’s attention following weeks of bearish pressure. The token has surged 5.07% with a 21.29% increase in trading volume over the past 24 hours, per CoinMarketCap data. BONE could be poised for a price uptrend in the coming days as bulls take charge.
A look into BONE’s technical setup
BONE has been consolidating inside a descending triangle over several months, forming lower highs and lower lows on the 1-day chart. As of writing, the token is testing a breakout near the $0.29 key resistance level on its descending trendline. A confirmed breakout above this level could spark a rally toward $0.40 and $0.52, the previous key resistance zones, while targeting $0.75 in the mid-term.
So, what’s next for BONE?
BONE’s 24-hour Relative Strength Index stands at 39 (oversold zone) and has risen to 51(neutral zone) on the lower (4-hour) timeframe, suggesting heightened buying pressure. Similarly, in the lower timeframes, the MACD(12,26), short-term and mid-term moving averages are flashing “buy,” suggesting a building bullish momentum, at press time.
With the Open Interest (OI)-Weighted Funding Rate turning positive, BONE bulls could be anticipating a confirmed breakout above the $0.29 resistance level to begin the rally. Failure to confirm the breakout, BONE could drop further, finding support at $0.26. Traders are monitoring these key levels, and with a high buying volume, BONE could break above and rally upwards.
