Solana's memecoin – Book of Meme (BOME) has entered a recovery phase, witnessing an upward price trend amid a correction in the broader cryptocurrency market. Due to increased trading activity, the global cryptocurrency market capitalization increased by 9% over the past week.
This price increase has impacted the value of BOME, which has increased by more than 10% in the same period and is expected to increase further.
BOME seems ready to take off
An important confirmation of the current bullish trend is the setup of the BOME Alligator indicator. This indicator tracks the asset's market trend and identifies potential price reversal points for that asset.
It consists of three SMMA lines*, Crocodile Jaw (blue line), Teeth (red line) and Lips (green line).
Early Thursday morning, readings from BOME's Alligator indicator showed that the green line had crossed above the red line and is now trending towards the blue line.
BOME analysis chart. Source: TradingView
This crossover marks the beginning of an uptrend. This means that BOME's recent price levels are rising faster than the medium-term trend. If the green line continues to move towards and potentially above the blue line, it means bullish momentum is increasing.
Traders often interpret this crossover as a signal to open long positions. The uptrend will become stronger if the green line crosses above the blue line and the three lines start to separate.
Another notable indicator that highlights the bullish trend in the BOME market is the Moving Average Convergence/Divergence (MACD). At press time, BOME's MACD line (blue line) was above the signal line (red line) and trying to cross the zero line.
BOME analysis chart. Source: TradingView
This indicator identifies changes in the price strength, direction and duration of an asset. When set up this way, the asset's short-term price momentum will be stronger than its long-term momentum. This is often considered a bullish signal, indicating that the price may continue to go up.
Price Prediction: BOME could hit a record low if sentiment changes
If BOME maintains its current uptrend, it will surpass the $0.01 level it last reached in early June.
BOME analysis chart. Source: TradingView
However, if the bears regain control of the market, they will force the price down, which could see BOME trading at an all-time low of $0.0063.
*SMMA line (Smoothed moving average): is a variation of the EMA line with the application of calculation including SMA and EMA to reduce price reaction delay.
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