BOME's price has increased by double digits in the past 24 hours
The past few weeks have also seen it consolidate within a horizontal channel
The recent surge in the Memecoin market has caused the price of the frog-themed token Book of Meme [BOME] to rise by 21% in the past 24 hours.
At press time, the altcoin is valued at $0.0125 on the charts. During early trading on May 16, BOME’s price rose to a one-month high of $0.13 before retreating slightly to press time levels, according to CoinMarketCap.
BOME makes an attempt
The calmness in the cryptocurrency market prior to the recent uptrend caused BOME’s price to move in a tight range, forming a horizontal channel.
This channel is usually formed when an asset trades sideways within a specific range for a given period of time. This occurs when neither the buyers nor the sellers of an asset have a strong enough influence to push the price up or down significantly. In this case, an area is created where the price of the asset bounces between highs and lows, forming its resistance and support levels.
As far as BOME is concerned, it is facing resistance at $0.0127 while finding support at $0.007.
As of the time of writing, BOME appears ready to trade above its resistance level. A buy signal is generated when the price of an asset breaks above the overhead resistance trendline.
AMBCrypto’s assessment of other key technical indicators confirms the possibility of a breakout above this resistance level.
For instance, BOME’s key momentum indicators were in an uptrend at press time. Its relative strength index (RSI) was at 58.38, and its money flow index (MFI) was at 61.95.
At these values, the indicators show buying pressure outweighing profit-taking activity.
Additionally, BOME’s Chaikin Money Flow (CMF) rebounded above the zero line to hit 0.03 at press time. The indicator tracks money flowing in and out of an asset. When it returns a value above zero, the market has the liquidity it needs to sustain the price of an asset.
Additionally, BOME’s Elder-Ray Index returned positive, confirming the ongoing bullish trend. The indicator measures the relationship between the strength of altcoin buyers and sellers in the market.
When this is positive, bullish control will dominate the market. At press time, BOME’s Elder-Ray Index was 0.0024.
What’s next for BOME?
If BOME breaks out of its resistance level, its next price point will be $0.015. However, if this prediction is invalidated and the bears regain control, the value of the memecoin might be forced closer to the $0.009 support level.
