Analyst Crypto Conqueror identifies levels to pay attention to for Bone ShibaSwap, a prominent Shiba Inu ecosystem token, eyeing a potential reversal.
Bone ShibaSwap (BONE) displayed brief volatility over the past week, fluctuating between $0.27 and $0.32. A sharp surge on May 4 temporarily pushed the price above $0.32, followed by a retracement that stabilized around $0.29 by May 6.
While this movement signals short-term price fluctuations, an analyst is now tracking a potential reversal pattern forming near historically significant support levels.
Reversal Signals Align with Fibonacci Channel Levels
Technical analyst Crypto Conqueror highlighted a possible trend reversal based on the Fibonacci channel and price behavior around key zones.
According to the analysis, BONE has found repeated support at $0.21, which corresponds with the 0.236 Fibonacci retracement level. This support level has historically triggered price rebounds, confirming its significance in the current market condition.
The analyst suggested that the key Fibonacci channel zones at $0.35 and $0.44 have historically functioned as both support and resistance, with multiple price touches reinforcing their significance. He emphasized that these levels are likely to act as the initial indicators for upward movement. Sustained price closures above these bands would signal potential bullish momentum.
Furthermore, the analyst identified the Fibonacci 1 channel level at $0.94 as a critical breakout point. Although price wicks have extended to this level five times since BONE’s launch, there has yet to be a confirmed close above it on the line chart.
As noted by Crypto Conqueror, a close beyond this threshold would represent BONE’s definitive trend reversal and open the path to higher Fibonacci targets. Specifically, the 1.618 Fibonacci channel target stands at $2.60, while the 2.618 level corresponds to $16.80.
On-Chain Activity Reflects Deflationary Pressure
Adding to this technical structure, recent on-chain events suggest potential supply-side pressure. The Sol Killer (DAMN) project, a meme coin operating on the Shiba Inu blockchain Shibarium, recently burned 10,197 BONE tokens.
DAMN’s official X account disclosed the burn event, while Shibariumscan verified the removal alongside 189.47 million DAMN tokens. This burn activity reduces the circulating supply of BONE, contributing to its deflationary outlook and potentially reinforcing long-term price stability.
This development follows a broader effort across the Shiba Inu ecosystem to introduce deflationary measures. However, despite these actions, other metrics present a more cautious backdrop for short-term outlooks.
Large Holders Show Cautious Behavior
Whale activity over the last three months has reflected lower participation in accumulation. Data sourced from IntoTheBlock reveals a decline in large holder inflows from early February through April 2025.
Percentage changes in 7-day, 30-day, and 90-day inflows show steep drops of -68.04%, -70.36%, and -32.47%, respectively. This trend suggests that while BONE has recovered from its March lows, larger investors remain hesitant to increase holdings at current levels.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
