Does the Book of Meme (BOME) offer a 1:4.5 R/R, long running time?
The popular Solana-based meme coin, Book of Meme (BOME), has successfully tested its breakout level and is now ready for a celebrity-sponsored rally. With this, Mem Coin looks aggressive and gets more support for on-chain parameters like open interest, long/short ratio and others.
Book of Meme (BOME) technical analysis and upcoming levels
According to CoinPedia's technical analysis, BOME looks bullish as it has picked up from an earlier falling wedge price action pattern. After this upheaval, MemCoin rallied sharply, and during that rally, broke the $0.00085 resistance level before entering a correction.
BOME 1:4.5 Risk-to-reward ratio
However, with the recent price increase, BOME has successfully retested the horizontal breakout level, confirming it as a successful breakout. This repeated test has created a perfect trading opportunity for long or swing traders with a risk-to-reward ratio of 1:4.5.
In this setup, if the price of BOME drops by 20% and breaks the $0.00076 level, traders will liquidate their positions. On the other hand, it offers a return of 90%, which can be a great opportunity for long-term traders. However, achieving this target will not be easy for traders as it requires a lot of patience.
Additionally, MEM Coin is currently trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that the BOME is bullish.
BOME's bullish metrics on the chain
On-chain metrics further support this BOME's positive outlook. According to on-chain analytics firm Coinglass, BOME's long/short ratio over the four-hour time frame had a value of 1.03 at press time. This value indicates strong bullishness among traders.
Additionally, BOME's open interest (OI) jumped by 9.62% in the last 24 hours and by 6.3% in the last four hours. This increasing OI suggests growing interest from traders and investors, possibly due to retesting and confirmation of recent occurrences.
Current price momentum
At press time, BOME is trading at around $0.00096 and has experienced a modest price increase of 1.05% in the last 24 hours. At the same time, the trading volume decreased by 50 percent, which shows that the participation of traders and investors has decreased compared to the previous days.
