Bone ShibaSwap (BONE) Displays Brief Volatility, Targeting Potential Reversal

Analyst Crypto Conqueror is tracking a potential reversal pattern for Bone ShibaSwap (BONE) as the prominent Shiba Inu ecosystem token threatens to break through a historically significant support level.

Shiba Ecosystem Token Shows Brief Volatility

Bone ShibaSwap (BONE) displayed brief volatility over the past week, bouncing between $0.27 and $0.32. A sharp surge on May 4 pushed the price briefly above $0.32, setting off a retracement that stabilized around $0.29 by May 6. While this movement signals short-term price fluctuations, one analyst is now tracking a potential reversal pattern forming.

This analysis is unfolding as the Sol Killer (DAMN) project burnt 10,197 BONE tokens. The meme coin project operates on the Shiba Inu blockchain Shibarium.

The project announced the burn event on its X account, while Shibariumscan confirmed 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.

The development follows a broader effort across the Shiba Inu ecosystem to introduce deflationary measures. However, despite these actions, other metrics present a moodier backdrop for short-term outlooks.

Large Holders Show Benign 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 seven-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.

Fib Levels Point To Potential Breakout

Technical analyst Crypto Conqueror highlighted a possible trend reversal based on the Fibonacci channel and price behavior around key zones.

According to the analyst, BONE has found repeated support at $0.21, coinciding with the 0.236 Fibonacci retracement level. This support level has triggered historical price rebounds, confirming its significance in the current market condition.

The analyst stated that the key Fibonacci channel zones at $0.35 and $0.44 have acted as both support and resistance, with multiple price touches highlighting their importance. He noted that these levels are likely to be the initial indicators for upward movement. Sustained price closures above these bands would signal potential bullish momentum.

Moreover, the analyst identified the Fibonacci 1 channel level at $0.94 as a critical breakout point. Although price wicks have reached this level five times since BONE’s launch, there hasn’t yet been a confirmed close above it on the line chart.

As noted by Crypto Conqueror, a close beyond this threshold would mark BONE’s definitive trend reversal and clear the way for higher Fibonacci targets. Specifically, the 1.618 Fibonacci channel target stands at $2.60, while the 2.618 level corresponds to $16.80.