Analyzing why BONE rallied 10% in the last 24 hours

• The developers of BONE have renounced the token’s deployer contract.
• This caused the token’s price to rally by almost 10% in the past 24 hours.

The price per Bone ShibaSwap [BONE] token rose by almost 10% in the past 24 hours, as sentiments improved after the project developers announced that they had fully renounced the token’s deployer contract.

In this sense, renouncing a contract means that the developers of a crypto project are giving up control of it and can no longer make changes to or update it. This move always increases trust and confidence among investors.

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

This is a positive step for BONE as it shows coin holders that the developers are committed to decentralizing the project and putting control in the hands of the community.

Buying pressure climbs among spot traders

At press time, the altcoin exchanged hands at $0.8919, per data from CoinMarketCap. An assessment of market activity on a 12-hour chart revealed that spot traders have increasingly accumulated the BONE, pushing it to overbought highs. 

Firstly, BONE’s price traded above the upper band of its Bollinger Bands (BB) indicator at the time of writing. 

When the price of an asset rallies in this manner, it suggests that the price is trading at a high significantly above its moving average. It is key to note that a correction typically follows price highs like this; hence, caution is advised.

Other key momentum indicators were positioned above their respective center lines and in uptrends. BONE’s Relative Strength Index (RSI) was 58.79, while its Money Flow Index (MFI) sat at 69.48.

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Moreover, its Aroon Indicator – which measures the strength of a market trend – was 100% at press time. When the Aroon Up line is close to 100, it indicates that the uptrend is strong. 

Moreso’s BONE’s Average Directional Index (ADX) of 46.17 confirmed the strength of the uptrend among daily traders. Typically, when an asset’s ADX is more than 25, it indicates that the market is trending strongly.

The Positive Directional Indicator (green) at 30.22, resting above the Negative Directional Indicator (red) at 11.49 at press time, confirmed that the buyers’ strength outpaced sellers.

Source: BONE/USDT on TradingView