Memecoins
How high can BOOK OF MEME price go after 20% hike?
Meme cryptocurrencies in the Solana ecosystem are posting a cumulative net gain of over 5% on Monday, led by the price of BOOK OF MEME. The price increase comes as Bitcoin once again debuts above $70,000, shaken by former US President and Republican Party candidate Donald Trump’s speech at the Bitcoin conference in Nashville.
Despite the 20% rise in BOOK OF MEME to $0.0105, price action will be affected by several factors including the upcoming FOMC meeting, general market sentiment, buzz around Meme Coinsespecially those in the Solana ecosystem as well as key support and resistance areas.
What’s next as BOOK OF MEME price rally faces key resistance?
After the drastic fall in early July, BOME Price The price successfully retested the $0.0065 support, resulting in a major trend reversal. Although the initial attempt lost momentum at $0.0095, the bulls were not ready to give up control, at least not completely.
So they tried a second attempt, bolstered by ascending trendline support. And as soon as the bulls gathered enough liquidity between $0.007 and $0.008, BOOK OF MEME bounced back, breaking through the stubborn $0.0095 hurdle and exploding all the way to $0.01065.
Meme Book Price Chart | Tradingview
The factors behind this bullish outlook range from the sudden increase in volume following the break above the triangle to the Relative Strength Index (RSI) rising above a key bearish divergence.
However, traders should be careful as the RSI is showing signs of weakness after entering the overbought zone. If the RSI slides into the neutral zone, some people might decide to withdraw their money, thus accelerating the correction.
A golden cross pattern in the same four-hour range strengthens the bullish grip on the BOOK OF MEME price. This pattern will manifest with the 50-day exponential moving average (EMA) crossing above the 200-day exponential moving average.
Impact of the inverse H&S model on the BOME
Based on the daily chart, the BOME uptrend looks unstoppable and based on a validated inverse head and shoulders pattern. Traders expect a 41% rise above the breakout point of $0.0093 to $0.013.
Meme Book Price Chart | Tradingview
BOME could face more challenges as volatility tends to increase after the FOMC. Considering these factors could allow traders to buy more BOME in case of a retest of $0.01 or the neckline resistance at $0.0093.
According to Coin glass According to data, BOME futures market open interest is booming, up 50% in 24 hours to $107 million.
On one hand, this is a bullish signal as it shows growing interest in the asset, on the other hand, it could indicate incoming volatility followed by a correction as traders start cashing in their gains.
It would be prudent to monitor the BOOK OF MEME price reaction above $0.01 this week. A consistency above this new support would imply that the bulls have the upper hand and the uptrend will progress towards $0.02.
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Frequently Asked Questions
Investors appear to be paying attention to meme coins in the Solana ecosystem, and this could help support BOME’s rally.
According to the analysis, BOME has the potential to maintain the uptrend, targeting $0.02 in the short term. However, a correction to $0.01 or $0.0095 cannot be ruled out before a larger rebound.
The cryptocurrency market is volatile, and cryptocurrencies are even more volatile. Investors should understand the risks involved and practice risk management to avoid suffering losses with cryptocurrencies.