The popular Solana-based meme coin Book of Meme (BOME) has successfully retested its breakout level and is now poised for a notable rally. With this, the meme coin looks bullish and continues to receive 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 looks bullish as it previously broke out of a falling wedge price pattern. Following this breakout, the meme coin rallied significantly and during that rally, it broke the resistance at $0.00085 before entering a correction.
BOME Risk/Reward Ratio 1:4.5
However, with the recent rally, it seems that BOME has successfully retested the horizontal breakout level, confirming that it was a successful breakout. This retest has created a perfect trading opportunity for long-term traders or trend traders with a risk/reward ratio of 1:4.5.
In this setup, traders will liquidate their positions if the price of BOME drops 20% and breaks the $0.00076 level. On the other hand, it offers a profit margin of 90%, which can be a great opportunity for long-term traders. However, this target will not be easy to achieve for traders as it requires a lot of patience.
Additionally, the meme coin is currently trading above the 200 Exponential Moving Average (EMA) on the daily time frame, suggesting that BOME is in an uptrend.
BOME's Bullish On-Chain Metrics
On-chain metrics continue to support BOMEâs positive outlook. According to on-chain analytics firm Coinglass, BOMEâs Long/Short ratio is at 1.03 at press time over a four-hour time frame. This value indicates strong bullish sentiment among traders.
Additionally, BOMEâs open interest (OI) has increased by 9.62% in the last 24 hours and 6.3% in the last four hours. This increase in OI indicates increasing interest from traders and investors, possibly due to the successful retest and confirmation of the recent breakout.
Current price momentum
At press time, BOME was trading at around $0.00096 and had seen a modest price increase of 1.05% over the past 24 hours. During the same period, its trading volume dropped by 50%, indicating a decrease in participation from traders and investors compared to previous days.