Recently, the popular meme cryptocurrency Book of Meme (BOME), which has been on a downward trend, has entered a recovery phase. After a prolonged downtrend, it is showing a tendency to break above the upper line of the triangle formed as resistance. Especially since May 28, this resistance line, which has been a point of resistance, is preparing to be breached with an increase of nearly 10% in the last week.
Critical Formation in BOME
The descending triangle formation occurs when the decreasing peaks and troughs in token prices converge and is generally considered a bearish market signal indicating increased selling pressure. For BOME, the resistance level is at $0.015, while the support level is at $0.008. Currently, the cryptocurrency is trading at $0.009, with a 6% increase over the past seven days.
The activity around BOME can also be understood from the increase in open interest in futures contracts. Currently, BOME’s open interest in futures is at $60.25 million, having increased by 14% over the past six days. Open interest measures the total number of outstanding or unresolved futures or options contracts, and an increase indicates more active contracts in the market and increased market activity and investor interest.
BOME Data
Despite BOME’s slight recovery over the past week, the bearish trend in the market is still evident. The on-chain weighted sentiment has been below zero since June 16 and is currently at -0.55. This metric measures the overall positive or negative sentiment in discussions about a cryptocurrency on social media platforms, and when negative, it indicates that the sentiments expressed about the asset are mostly fear, uncertainty, and doubt (FUD).
If sentiment shifts from bearish to bullish and buying activities gain momentum, BOME could break resistance and rise above $0.01. However, if bearish sentiment continues and a downward correction occurs, BOME’s price could fall towards the support level of $0.008.
