The popular Solana-based meme coin, Book of Meme (BOME) has successfully retested its breakout level and is now poised for a notable upside rally. With this, the meme coin appears bullish and further gets support from on-chain metrics such as open interest, long/short ratio, and others.
According to CoinPedia’s technical analysis, BOME appears bullish as it previously broke out from a falling wedge price action pattern. Following this breakout, the meme coin rallied significantly, and during that rally, it broke a resistance level of $0.00085, before going into correction.
However, with the recent price surge, it appears that BOME has successfully retested the horizontal breakout level, confirming it as a successful breakout. This retest has created a perfect trading opportunity for long-term or swing traders with a 1:4.5 risk-to-reward ratio.
In this setup, traders will liquidate their positions, if BOME’s price drops by 20% and breaches the $0.00076 level. On the other hand, it offers a return of 90%, which could be a great opportunity for long-term traders. However, this target will not be easy for traders to achieve, as it requires lots of patience.
Additionally, the meme coin is currently trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating BOME in an uptrend.
The on-chain metrics further support this BOME’s positive outlook. According to the on-chain analytics firm Coinglass, BOME’s Long/Short ratio had a value of 1.03 at press time in a four-hour time frame. This value suggests a strong bullish sentiment among traders.
Additionally, BOME’s open interest (OI) has jumped by 9.62% over the past 24 hours and 6.3% over the past four hours. This rising OI suggests growing interest from traders and investors, likely due to the successful retest and confirmation of the recent breakout.
At press time, BOME is trading near $0.00096 and has experienced a modest price surge of 1.05% in the past 24 hours. During the same period, its trading volume declined by 50%, indicating reduced participation from traders and investors compared to previous days.
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