Connect with us

Hi, what are you looking for?


Shibarium relaunch sparks BONE price rally, but bearish signals linger

The mainnet relaunch of Shibarium, a Layer-2 (L2) solution for the Shiba Inu [SHIB] ecosystem, on 24 August has sparked a price rally for one of its tokens, Bone ShibaSwap [BONE]. According to CoinMarketCap, BONE has gained almost 20% in the past seven days and was ranked as the top gainer among all cryptocurrencies at the time of writing. 

Source: CoinMarketCap

The increased activity around BONE in the past few days was because some community members regained access to their previously bridged BONE tokens after Shibarium’s relaunch.

When the L2 network first went live on 16 August, it experienced scalability issues due to a massive transaction surge. Also, the bridge that allowed users to move tokens from other networks to the Shibarium network became faulty, causing many community members to lose access to their BONE tokens temporarily. 

The Shibarium team halted public access to the network after discovering the bridge’s problem. They then fixed the issue, and relaunched the network on 24 August.

All bark, no bite

At press time, BONE exchanged hands at $1.38. Despite the rally, an assessment of price movements in the daily chart revealed that accumulation had slowed amongst daily traders.

A few negative divergences existed between BONE’s price and some key momentum indicators. For example, while BONE’s price climbed following Shibarium’s relaunch, its RSI and MFI trended downward. At press time, south-bound, the token’s RSI rested upon its 50-neutral line. Likewise, the MFI was positioned below its center line at 47.51 during the same period.

The divergence between price and indicators showed that the price increase was not supported by solid momentum. A price correction mostly follows situations such as this. 

Further, its Chaikin Money Flow (CMF) returned a negative value of -0.22 at press time. While BONE’s price grew in the last week, its CMF plummeted and slipped into negative territory on 16 August, a position it has since maintained. This is a bearish signal, mostly interpreted as a sell signal amongst traders. 

Source: BONE/USDT, TradingView

These price divergences suggested that once the hype sound Shibarium’s relaunch dies down in the coming days, and all previously-bridged BONE tokens have been retrieved, the alt’s price might suffer a significant negative correction. 

You May Also Like

Press Release

Cryptocurrency signals offer various advantages and can help improve the outcome of any trading you perform. But before anything else, you need to know...

Price Analysis

Litecoin price hit a barrier marginally under $80 following a 23% spike in just two days. The sixth-largest cryptocurrency retreated to establish and confirm...

Price Analysis

Ripple appears to have resumed the uptrend from the support recently formed at $0.23. The fourth-largest cryptocurrency was recently rejected from levels slightly above...


California-based fast-food chain Taco Bell is entering the booming non-fungible token (NFT) marketplace. The fast-food giant released a collection of original taco-themed art pieces...

Copyright © 2020 Blockchain News Portal. All Rights Reserved. Website and the information contained herein is not intended to be a source of advice or credit analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.