How high can the price of BOOK OF MEME rise after a 20% increase?

Meme coins in the Solana ecosystem boasted a cumulative net increase of over 5% on Monday, with the price of BOOK OF MEME leading the way. The price increase comes as Bitcoin re-debuts above $70,000, rocked by former US President and Republican candidate Donald Trump’s speech at the Bitcoin conference in Nashville.

Despite BOOK OF MEME rising 20% to $0.0105, the price action will be influenced by several factors including the upcoming FOMC meeting, overall market sentiment, buzz around meme coinsparticularly those in the Solana ecosystem and key support and resistance areas.

What awaits us now that BOOK OF MEME’s price rise is encountering significant resistance?

After the drastic drop in early July, BOME Prize retested the $0.0065 support, resulting in a major trend reversal. Although the first attempt lost momentum at $0.0095, the bulls were not ready to give up control, at least not completely.

Therefore, they pushed for a second attempt, supported by an ascending trendline support. And once the bulls gathered enough liquidity between $0.007 and $0.008, BOOK OF MEME rebounded, broke the stubborn hurdle at $0.0095 and shot up to $0.01065.

The factors that determine this optimistic outlook range from the sudden increase in volume after the breakout above the triangle pattern to the Relative Strength Index (RSI) rising above a major bearish divergence.

However, traders should be cautious as the RSI shows signs of weakness after entering the overbought region. Should the RSI fall into the neutral zone, some people may decide to cash in, accelerating the correction.

A golden cross pattern in the same four-hour range strengthens the bullish grip on BOOK OF MEME price. This pattern will manifest with the 50-day exponential moving average (EMA) crossing above the 200-day EMA.

How the Reverse H&S Pattern Affects BOME

Based on the daily chart, BOME’s uptrend seems unstoppable and based on a validated inverse head and shoulders pattern. Traders are looking for a 41% move above the breakout point from $0.0093 to $0.013.

BOME may face more challenges as volatility increases post-FOMC. Recognizing these factors, traders can buy more BOME in case of a retest of $0.01 or the neckline resistance at $0.0093.

According to Coin glass According to data, open interest in the BOME futures market has surged, up 50% in 24 hours to $107 million.

On the one hand, this is a bullish signal, as it shows a growing interest in the asset. On the other hand, it could indicate incoming volatility, followed by a correction, as traders start cashing in their profits.

It would be wise to pay attention to the BOOK OF MEME price reaction above $0.01 this week. Consistency above this new support would mean that bulls have the upper hand and the uptrend will continue towards $0.02.

Frequently Asked Questions (FAQ’s)

Investors seem to be paying attention to meme coins in the Solana ecosystem and this could sustain BOME’s rally.

Based on the analysis, BOME has the potential to maintain the uptrend, with a target of $0.02 in the short term. However, a correction to $0.01 or $0.0095 cannot be ruled out before a bigger rebound takes place.

The crypto market is volatile – memecoins are even more volatile. Investors need to understand the risk and practice risk management to avoid losses with memecoins.