Universal High Income
OnlyAgent
Aerodrome Finance
Monero
Pearl
Axis Robotics
Quantus
- BONE/USDT is up 2.04% as of today’s trading session
- BONE/USDT made a recovery of almost 15% from its recent dip
Bone was recently listed on the OKX exchange. The listing pumped the asset price by 50% and it recorded an all-time high of $1.20. The price couldn’t sustain for very long and the market collapsed by almost 45%.
BONE/USDT is trading at $0.7620 at present . The price created a new all-time low at $0.659 just months after its all-time high. This is because the asset is relatively new on the exchange and recently made available for the general public to trade. It’s an usual pattern to see a pump during the listing of a token on any exchange followed by a dump. This is because early investors are booking profits and taking some money off the table.
The Daily chart shows a bearish market structure.
The Daily chart represents a bearish market structure as the price created a lower high followed by the lower low. Investors must keep note that the digital asset is new. It is relatively difficult to perform technical analysis on such an asset due to lack of data. According to the market structure, the price briefly formed a pattern which appears to be a declining channel.
The price managed to escape this channel while contributing to its probability of an upside move. This has a potential of almost 25% to the price of $0.909 which is a daily resistance. Such a move can fuel the momentum that can take BONE back to $1. The price is taking support at $0.7180 and managed to close above the 9 and 15 EMA on the daily timeframe. RSI is signaling a divergence but its credibility can be questioned due to the lack of data.
The 4H chart shows a potential bear flag
As we take a closer look, the 4H chart gives us a clear picture of the short-term action. The price managed to break out of this channel but it is still below the 200 EMA on the 4H. This means the bears hold the potential to flip the market at any point and investors must strategize their risk management plans accordingly.
The Price action is steadily moving upwards in an ascending channel. This appears to be a formation of a bear flag which is a common continuation pattern in a downtrend. If the price breaks below the $0.7180 level, Investors should embrace themselves for a downhill ride. The target of this bear flag is almost 17% which will create a new all-time low.
RSI: The RSI indicator is currently at 69.90 and the RSI has crossed the MA line towards the downside This is a sign of bullish strength.
MACD: The MACD indicator appears to be bullish due to the crossover above 0 line.
200 EMA: As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.
Technical levels
Support Levels: $0.7180 – Support 1
$0.6596 – Support 2
Current Price: $0.7620
Resistance Levels: $0.8305 – Resistance 1
$0.9117 – Resistance 2
Conclusion:
BONE is trading in a bearish price action. The price must make a higher high above $0.9117. This will confirm the change of trend and the market can target new highs. At present, the price is still below the 200 EMA on 4H. It is indicating that bears still have an edge and the investors shouldn’t be surprised to see lower prices. Bone is relatively new and the investors must factor in the fundamentals along with technicals to make sound investment decisions while following a good risk management plan.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
