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Bone Shibaswap Price Prediction: $BONE Upside Momentum Wanes

Bone Shibaswap price declined on Friday, losing 2.78 percent to trade at $0.6126 at the time of writing. That saw it erase most of the gains made on Thursday, when it closed trading at 0.6301, after making a major gain of 4.8 percent in the intraday session, amidst a broad market downturn.  The global cryptocurrency market is reeling from substantial losses in the post-halving era as investors remain unsure of when Bitcoin will return to the upside.

Bone Shibaswap is among the few notable winners during the downtrend period, with weekly gains topping 0.26 percent.  In comparison, Bitcoin has lost 6 percent of its value during that period, with the price declining from $64800 to $59340 as of this writing. Ethereum has gone down by 8.6 percent during the same period.  

$BONE, which is the native gas token to Shibarium has renewed vigour  following the integration of ShibaSwap into Shibarium. This has expended the utility of BONE, as users will need it to fund transactions and liquidity in the layer-2 network. Furthermore, ShibaSwap is now compatible with both Ethereum and Shibarium chains, broadening its ecosystem reach. The new integration has come with significant reductions in transaction costs, which will likely make 4BONE more attractive to more users and developers.

 Going forward, users and developers will need $BONE to transact on Shibarium, while projects will need it to provide liquidity. In addition, the burn mechanism on $BONE is expected to reduce the circulating supply, helping boost the token’s value. Furthermore, the tens of thousands of investors in the Shiba Inu community are likely to keep buying $BONE in anticipation of airdrops.

Technical analysis

The 24-hour transaction volume on Bone Shibaswap has declined from 2.5 million to 857 million. Therefore, it signals that much as the token price has declined, not many holders are selling $BONE. That is likely to limit the downside. Meanwhile, the 30-minute trading chart signals that the sellers are in control. The downside is likely to prevail if resistance persists at 0.617. That could see movement below the support at 0.597, and potentially lower to test 0.582 in extension.

However, a move above 0.617 will favour the buyers to take control. Furthermore, a sustained push could breach the resistance at 0.633, thus invalidating the downside narrative. Extended control by the buyers at that point will likely build momentum to test 0.640.