The popular Solana-based meme coin, Book of Meme (BOME), has successfully retested its breakout level and is now poised for a notable upward rally. With this, the meme coin appears bullish and receives further support from on-chain metrics such as open interest, long/short ratio and others.
Book of Meme (BOME) Technical Analysis and Upcoming Levels
According to CoinPedia’s technical analysis, BOME appears bullish as it previously broke out of a bearish wedge price action pattern. After this breakout, the meme coin rose significantly and during that rally it broke a resistance level at $0.00085 before heading into correction.
BOME 1:4.5 Risk to Reward Ratio
However, with the recent price increase, it appears that BOME has successfully retested the horizontal breakout level and confirms that it is a successful breakout. This retest has created a perfect trading opportunity for long-term or swing traders with a risk-reward ratio of 1:4.5.
In this setup, traders will liquidate their positions if the price of BOME falls by 20% and crosses the $0.00076 level. On the other hand, it offers a 90% return, which could be a great opportunity for long-term traders. However, this goal will not be easy for traders to achieve as it requires a lot of patience.
Furthermore, the meme coin is currently trading above the 200 Exponential Moving Average (EMA) on a daily basis, indicating that BOME is in an uptrend.
BOME’s bullish on-chain metrics
The on-chain metrics further support this BOME’s positive outlook. According to the on-chain analytics company Mint glassAt the time of going to press, BOME’s Long/Short ratio had a value of 1.03 within a four-hour period. This value indicates strong bullish sentiment among traders.
Furthermore, BOME’s open interest (OI) has increased by 9.62% over the past 24 hours and 6.3% over the past four hours. This rising OI indicates growing interest from traders and investors, likely due to the successful retest and confirmation of the recent breakout.
Current price momentum
At the time of writing, BOME is trading around $0.00096 and has experienced a modest 1.05% increase in the last 24 hours. During the same period, trading volume fell by 50%, indicating that trader and investor participation is smaller than previous days.