🔥 Will the BOME Breakout Run Fail Due to Underlying Weakness?
An ongoing run in BOME fractures the overhead declining trendline with a 35% increase in this cycle. However, the shorter-term trend reveals a 25% downside risk awaiting the meme coin.
Facing a massive demand crunch after hitting the $0.030 peak in March this year, BOME declines quickly to the $0.0071 support. Despite multiple trend reversal attempts, the quick to exhaust bullish powers in the meme coin led to a resistance trendline.
As the ongoing bullish cycle manages to absorb the overhead supply with a breakout run, a bearish pattern warns of a downfall. So, will the breakout rally in BOME continue after months of correction, or is a downfall imminent?
🔸 Breakout Run and Trend Reversal in Book of Meme (BOME)
As previously mentioned, the bearish influence of the declining trendline led to a death cross and a long correction spree in BOME. Furthermore, the loss of bullish dominance at the $0.010 psychological mark led to a bearish alignment of the crucial daily EMAs (20, 50, 100).
Coming to the ongoing recovery, the higher high formation from the $0.0071 support breaks above all the crucial EMAs. Furthermore, the bull run breaks the overhead trendline of the descending triangle forming with the $0.0071 baseline.
Currently, the meme coin forms a Doji candle at $0.01076, but the 21.50% jump over the last two days teases an uptrend continuation.
The daily RSI line faces opposition near the overbought territory, resulting in a downtick. However, the reversal might indicate a retest for additional momentum. Moreover, the 20D and 50D EMA are on the verge of a bullish crossover.
🔸 Bearish Megaphone Pattern in BOME Risks 25% Drop
The higher high formation in the 4H chart with massive volatility forms a rising resistance trendline. However, the support trendline remains conservative and comparatively flatter, leading to the megaphone pattern in the BOME chart.
