Key Takeaways
Book of Meme booked a 27% rally in two days, but traders and investors should maintain reasonable bullish expectations in the coming days.
Book of Meme [BOME] was experiencing a short-term rally. In the 48 hours leading up to press time, BOME rallied 27%, despite accounting for the pullback the memecoin experienced from the $0.00245 resistance.
The 1-day chart showed that BOME was above a key short-term supply zone at $0.0021, highlighted in cyan. The $0.00205 and $0.0022 levels acted as resistance in recent weeks and months.
The price action since May showed repeated failures to hold above $0.002 and meaningfully challenge the $0.0026 resistance.
Momentum indicators flash green
The most recent rally also began losing strength at the $0.00255 mark, and has pulled back 11.3% to reach $0.00226 in five hours. This pullback might have offered a buying opportunity.
On the 1-day timeframe, the OBV was trending higher in August. The momentum was also in favor of the bulls; the RSI showed a reading of 61.
The trading volume on Friday and Saturday, when the breakout past $0.002 occurred, was higher than average.
Together, the clues pointed toward a bullish trend reversal for BOME.
Having said that, the $0.002–$0.0026 area has been a strong supply zone since May. Investors and traders should remain cautiously bullish.
BOME price trend clues from the liquidation heatmap
Source: CoinGlass
AMBCrypto examined the 1-month and 1-week lookback period Liquidation Heatmaps.
The former showed that the memecoin saw a strong reaction from the $0.0017 magnetic zone, reaching $0.0023 within a day.
Naturally, this explosive move boosted the confidence of long traders, building fresh liquidity pockets below market price.
Source: CoinGlass
These zones were more clearly visible on the 1-week chart. The $0.00216 and $0.0022 levels emerged as short-term targets for Book of Meme traders.
On top of that, a buying opportunity at these support levels appeared viable. Traders should still monitor Bitcoin [BTC] and broader sentiment before taking long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
