Analysis
Sold BOME in a panic? Here’s why you might dive back in
The memecoin still has the potential to deliver triple digit percentage gains in the coming days and weeks.
- BOME saw an uptick in demand over the past 24 hours.
- The derivatives market showed bullish conviction in the short-term.
Book of Meme [BOME] registered gains worth 70% since reaching the lows at $0.087 on the 19th of March. It was expected that a downtrend could begin on the lower timeframes since the $0.0116 level failed to hold as support.
At press time, BOME prices were back above this level, and bearish expectations did not come to pass. After retracing deeper than expected, BOME appeared to continue its rally.
The momentum was in favor of the bulls again
Source: BOME/USDT on TradingView
The trading volume since the 17th of March has been relatively stable. It did not see sharp upticks which usually accompany strong price surges. This suggested that bullish fervor has not gripped the market yet.
However, the RSI on the one-hour chart climbed back above neutral 50 on 21st March. BOME also climbed above the short-term resistance at $0.0134. This was a positive development. The market structure maintained its bullish bias since the price hasn’t dropped below $0.007249, the recent swing low.
The OBV has trended slowly higher since 19th March. Combined with the recent momentum shift, it was an early sign that BOME bulls were gaining strength. The memecoin still has the potential to deliver triple-digit percentage gains in the coming days and weeks.
Source: Coinalyze
The Open Interest behind BOME bounced higher on the 21st of this month when the RSI also soared higher. This influx of capital indicated bullish sentiment and speculators going long.
Realistic or not, here’s BOME’s market cap in BTC’s terms
The spot CVD also began to climb higher and reversed its previous downtrend. This was another encouraging sign for the buyers.
Demand in the spot market and strong bullish sentiment in the derivatives market could prime BOME for another surge skyward.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
