Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BONE was bullish on the higher timeframe charts but there was heavy resistance near the $1.9-$2 levels.
- The lower timeframe charts showed that a move below $1.6 could see a sizeable retracement.
Bone ShibaSwap [BONE] ranked fourth on the list of meme coins sorted by market cap, according to CoinMarketCap. The token embarked on an impressive rally in June and has not halted yet.
How much are 1,10,100 BONEs worth today?
The price action showed that further gains were possible, but the higher timeframe resistance below the $2 level could slow down the progress of the bulls. What scenarios can BONE swing traders plan for?
A fair value gap at $1.35 could attract BONE southward
![Bone ShibaSwap [BONE] surges past $1.5, should buyers wait for a retracement?](https://ambcrypto.com/wp-content/uploads/2023/08/PP-2-BONE-price.png.webp)
Source: BONE/USDT on TradingView
The $1.35 region also coincided with the resistance zone at $1.4 that BONE ran into in the first week of July. Hence, a move lower toward this region could offer a buying opportunity. At the time of writing, the market structure on the 1-day chart was firmly bullish.
The RSI showed strong bullish momentum and the OBV has trended higher since mid-June. This reflected buying pressure that drove prices higher.
The red box from $1.61-$2.1 represented a bearish order block on the weekly chart from February. BONE has already entered this resistance zone. Therefore, if we see a bearish structure break on the daily chart, it could be the first sign of rejection.
On-chain metrics showed accumulation and signaled further price gains were likely
![Bone ShibaSwap [BONE] surges past $1.5, should buyers wait for a retracement?](https://ambcrypto.com/wp-content/uploads/2023/08/PP-2-BONE-santiment.png.webp)
Source: Santiment
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The positive MVRV showed profit-taking activity could push prices lower in the coming weeks. The active deposits did not show a large spike, and traders can keep an eye on it. Such a spike could precede a sharp price drop, such as the one that occurred on 8 July.
The lower high from March at $1.87, marked in orange, was a level that could be important again. A rejection from the $1.6-$2 higher timeframe resistance could retrace to $1.4 before rallying again. Alternatively, if the selling pressure is too great it could push BONE back to the $0.9-$1 area.
