Altcoins
Will the BOME breakout fail due to underlying weakness?
The continued rise in BOME breaks the downtrend with a 35% rise during this cycle. However, the short-term trend reveals a 25% downside risk for the meme currency.
Faced with massive demand after hitting the peak of $0.030 in March this year, BOOM The meme price is rapidly declining to the $0.0071 support. Despite multiple attempts at trend reversal, the meme coin’s bullish powers are rapidly exhausted, leading to a resistance trendline.
As the ongoing bull cycle manages to absorb the rising supply through a breakout, a bearish pattern warns of a fall. So, will the BOME breakout recovery continue after months of correction, or is a fall imminent?
Breakout Run and Trend Reversal in Book of Meme (BOME)
As mentioned earlier, the bearish influence of the falling trendline led to a death cross and a long series of corrections. BOOM. Additionally, the loss of bullish dominance at the psychological $0.010 mark led to a bearish alignment of the crucial daily EMAs (20, 50, 100).
As for the ongoing recovery, the upper support formation of $0.0071 is above all the crucial active moving averages. Moreover, the uptrend is breaking the upper trendline of the descending triangle that is forming with the base line of $0.0071.
Currently, the meme coin is forming a Doji candle at $0.01076, but the 21.50% jump over the past two days suggests a continuation of the uptrend.
The daily RSI line is facing opposition near the overbought territory, which is leading to a decline. However, the reversal could indicate a retest for additional momentum. Moreover, the 20D and 50D EMAs are about to make a bullish crossover.
BOME Bearish Megaphone Pattern Risks 25% Drop
The formation of higher highs in the 4H chart with massive volatility forms an ascending resistance trendline. However, the support trendline remains conservative and comparatively flatter, leading to the megaphone pattern in the BOME chart.
Currently, BOME is facing opposition from the overhead trendline and warns of a negative cycle inside. If the dynamic support from the crucial EMAs fails, the meme coin could test the support trendline at $0.0080.
Additionally, the bearish crossover in the MACD and signal lines suggests a trend reversal within the pattern.
Will BOME crash this week?
With a long-term breakout on the BOME daily chart, a minor correction is normal for a retest. However, the 4H megaphone poses a bearish threat to the meme coin’s breakout rally.
Although the supply is gradually increasing, the multiple number of support elements should likely maintain the uptrend. According to the daily chart, the retest of the broken trendline could prove to be a bullish reversal point.
According to the Fibonacci retracement levels, BOME is struggling to reach the 50% Fibonacci level at $0.013. However, a continuation of the uptrend will likely push it past $0.020 in the coming months.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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