The meme coin known as Book of Meme (BOME), which is based on Solana, has successfully retested its breakout level and is now primed for a significant upside rally. The coin appears bullish and is supported by on-chain metrics such as open interest, long/short ratio, and more.
Technical Analysis and Future Levels of Book of Meme (BOME)
Based on CoinPedia’s technical analysis, BOME is showing bullish signs after breaking out from a falling wedge price action pattern. After the breakout, the meme coin saw a substantial rally, breaking through a resistance level of $0.00085 before undergoing a correction.
BOME 1:4.5 Risk-To-Reward Ratio
Following the recent surge in price, BOME has successfully retested the horizontal breakout level, confirming the breakout. This retest presents a favorable trading opportunity for long-term or swing traders with a 1:4.5 risk-to-reward ratio.
Traders can consider liquidating their positions if the price of BOME drops by 20% and falls below the $0.00076 level. However, if the target of a 90% return is achieved, it could be a lucrative opportunity for long-term traders, albeit requiring patience.
Moreover, BOME is currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe, indicating an uptrend.
Bullish On-Chain Metrics for BOME
On-chain metrics also support the positive outlook for BOME. Coinglass reported that BOME’s Long/Short ratio stood at 1.03 at the time of writing in a four-hour timeframe, indicating a strong bullish sentiment among traders.
Additionally, BOME’s open interest (OI) has increased by 9.62% in the past 24 hours and 6.3% in the past four hours. This rise in OI suggests growing interest from traders and investors following the successful retest and confirmation of the breakout.
Current Price Momentum
As of now, BOME is trading around $0.00096 and has seen a modest price increase of 1.05% in the past 24 hours. However, the trading volume has decreased by 50% during the same period, indicating reduced participation from traders and investors compared to previous days.
