Why a BONE rally might not be realistic in the near term

• Bearish sentiment around BONE increased in the last few days.
• SHIB’s value also declined along with BONE in the last 24 hours.

Bone ShibaSwap [BONE] witnessed a massive price correction in the last 24 hours, which can be attributed to the on-going market condition. While that happened, the token’s metric flagged a bullish signal. Does this mean a trend reversal for BONE? 

BONE’s state in the bear market

According to CoinMarketCap, BONE was down by more than 10% in the last 24 hours. At press time, the meme coin was trading at $1.18 with a market capitalization of over $270 million.

However, LUCIE, a popular X handle that posts updates related to the Shiba Inu ecosystem, revealed that BONE had a technical score of over 84. This meant that the chances of the meme coin gaining bullish momentum were high.

Therefore, AMBCrypto checked BONE’s on-chain data to find out what to expect from the token. We found that BONE’s social volume spiked a few days ago, reflecting its popularity.

However, its weighted sentiment remained in the negative zone, meaning that bearish sentiment around the meme coin was dominant in the market. 

Source: Santiment

Is a trend reversal possible? 

Our analysis of the meme coin’s daily chart revealed that its price touched the upper limit of the Bollinger Bands. Whenever that happens, it indicates that selling pressure on an asset might increase, which can result in a price drop.

The possibility of a rise in selling pressure was further proven by the Relative Strength Index (RSI), which was resting in the overbought zone. 

Source: TradingView

Though the aforementioned indicators looked bearish, a few of the on-chain metrics continued to support buyers. For example, its MVRV ratio went up in the last few days. Its network growth was high as well, meaning that more new addresses were created to transfer the token.

On top of that, the meme coin’s total number of holders also went up slightly over the last week. This meant that buying pressure was up, which can help lift the meme coin’s price in the days to follow.

Source: Santiment

Read Bone ShibaSwap’s [BONE] Price Prediction

Shiba Inu is also red 

While BONE’s value dropped, the network’s flagship token, Shiba Inu [SHIB], also followed a similar trend. According to CoinMarketCap, SHIB was down by more than 1.4% in the last 24 hours.

At press time, SHIB was trading at $0.00003821 with a market cap of over $22.5 billion. Market sentiment around the meme coin also remained bearish, which was evident from the drop in its weighted sentiment. 

Source: Santiment