For the first time since July, Book of Meme’s (BOME) price has hit $0.011. This happened after the Solana meme coin price jumped by 62% in the last seven days.
But that is not all. BOME’s recent rally has shown no signs of slowing down, as key indicators suggest that this could be the beginning of a much larger breakout.
Book of Meme Sees Record-Breaking Speculative Activity
BOME is making headlines not just because of its price but also because of its Open Interest (OI). According to Santiment, the token’s OI has reached a new all-time high of $161.97 million. Coinciding with the staggering price rally, this surge in OI, a key indicator of speculative activity in the derivatives market, suggests growing investor interest in the meme coin.
Simply put, Open Interest (OI) represents the total value of all active contracts in the market. When OI increases, it indicates that traders are gaining exposure to a cryptocurrency, adding more liquidity to the contracts.
Conversely, a decrease in OI signals that positions are being closed and capital is being removed from the market. In Book of Meme’s situation, traders have opened more contracts. This signifies increasing buying pressure in the derivatives market and fueling BOME’s impressive price momentum.
Read more: How to Buy Book Of Meme (BOME) And Everything Else To Know
Book of Meme Open Interest. Source: Santiment
Like the OI, BOME’s volume also climbed. As of this writing, the volume stood at $659.06 million — the highest since May 23.
Volume, in monetary terms, represents the value of buy-and-sell transactions within a specific period. The combination of rising price and volume suggests growing interest and liquidity, which often leads to further price appreciation.
Currently, BOME’s price has surged by 20% in the last 24 hours. If this upward momentum continues alongside increasing volume, the meme coin’s price could potentially surpass $0.11 in the near future.
Book of Meme Volume. Source: Santiment
BOME Price Prediction: Further Gains Likely
A glance at the BOME/USD chart reveals that the meme coin has finally broken out of the descending triangle pattern it formed in June. A descending triangle is a technical chart pattern that features a falling trendline, indicating lower highs, and a horizontal support line. This breakout suggests a potential shift in market sentiment, which could lead to further upward price momentum for BOME.
When the price breaks below the support line of a descending triangle, the trend is typically bearish, signaling a potential extended downtrend. However, in this case, BOME’s price rose above the support line, suggesting a possible bullish reversal, with the token poised to climb higher in value.
Another significant technical development is the condition of the Exponential Moving Average (EMA), a tool used to gauge a cryptocurrency’s trend. Notably, the 20 EMA (blue) has crossed above the 50 EMA (yellow) for the first time since May, which could indicate growing bullish momentum for BOME.
Read more: 5 Best Book Of Meme (BOME) Wallets To Consider In 2024
Book of Meme Daily Price Analysis. Source: TradingView
This position, known as a golden cross, is typically a bullish sign. Should this remain the same, BOME’s price is likely to breach the resistance at $0.013. In that situation, the meme coin could rally all the way to $0.015 or $0.017.
However, traders need to watch the meme coin closely. If Book of Meme fails to hold the current momentum or profit-taking rises, this prediction might be invalidated. In that case, BOME could decline to $0.0079.
