Meme coins in the Solana ecosystem flaunt a cumulative net increase of more than 5% on Monday, with BOOK OF MEME price leading the perk. This price uptick comes as Bitcoin makes another debut above $70,000 jolted by former US President and the Republican Party nominee Donald Trump’s speech at the Bitcoin Conference in Nashville.
Despite BOOK OF MEME rallying 20% to $0.0105, price action will be affected by several factors including the upcoming FOMC meeting, the general sentiment in the market, the buzz around meme coins, especially 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 drop in early July, BOME price successfully retested $0.0065 support, culminating in a major trend reversal. Although the initial attempt lost momentum at $0.0095, bulls were not ready to give up control, at least not entirely.
Therefore, they pushed for a second attempt, bolstered by an ascending trend line support. And as soon as bulls collected enough liquidity between $0.007 and $0.008, BOOK OF MEME rebounded, breaching the stubborn hurdle at $0.0095 and blasting to $0.01065.
BOOK OF MEME price chart | Tradingview
The drivers of this bullish outlook range from the sudden increase in volume following the breakout above the triangle pattern to the Relative Strength Index (RSI) rising above a key bearish divergence.
However, traders must be cautious with the RSI showing signs of weakness after entering the overbought region. Should the RSI slide into the neutral area, some people may decide to cash out, thus accelerating the correction.
A golden cross pattern in the same four-hour range reinforces the bullish grip on BOOK OF MEME price. This pattern will manifest with the 50-day Exponential Moving Average (EMA) crossing above the 200-day EMA.
How Inverse H&S Pattern Impacts BOME
Based on the daily chart, BOME’s uptrend seems unstoppable and grounded by a validated inverse head and shoulders pattern. Traders are looking forward to a 41% surge above the breakout point of $0.0093 to $0.013.
BOOK OF MEME price chart | Tradingview
BOME may face more challenges as volatility tends to increase after the FOMC. Acknowledging these factors could allow traders to buy more of BOME in case of a retest of $0.01 or the neckline resistance at $0.0093.
According to Coinglass data, the BOME futures market open interest is on a roll, 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 point to incoming volatility followed by a correction as traders start cashing out for gains.
It would be prudent to watch out for BOOK OF MEME price reaction above $0.01 this week. Consistency above this new support would imply bulls have the upper hand and the uptrend will advance toward $0.02.
Frequently Asked Questions (FAQs)
Investors seem to be paying attention to meme coins in the Solana ecosystem, and this may help sustain BOME’s rally.
Based on the analysis, BOME has the potential to sustain 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 crypto market is volatile—meme coins are even more volatile. Investors must understand the risk involved and practice risk management to avoid making losses with meme coins.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
