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The open interest for Solana meme coin BOME has reached an all-time high of $161.97 million, signaling that traders are increasing their positions.
Key Notes
Solana-based meme coin Book of Meme (BOME) has experienced a remarkable increase of nearly 60% in the past week.Trading volume for BOME has surged to $659.06 million, the highest since May 23, further reflecting heightened activity.Technical analysis reveals a breakout from a descending triangle pattern and a "golden cross" formation.Solana-based meme coin Book of Meme BOME $0.0093 24h volatility: 0.9% Market cap: $640.17 M Vol. 24h: $1.18 B has witnessed a massive surge recently gaining nearly 60% over the past week. As of press time, the BOME price is trading up 13.88% at $0.01022 and a market cap of $704 million. However, some on-chain indicators show that this is just the beginning of a much larger breakout for BOME.
What drives greater investor interest in Book of Meme (BOME) is the massive surge in the Open Interest (OI) for the meme coin. Data from blockchain analytics firm Santiment shows that BOME’s open interest (OI) has reached a new all-time high of $161.97 million.
This surge in OI coincides with the staggering BOME price rally suggesting greater investor interest. In simple terms, Open Interest (OI) reflects the total value of all active contracts in the market. An increase in OI suggests that traders are expanding their exposure to a cryptocurrency, while a decline in OI indicates that positions are being closed and capital is exiting the market. In the case of Book of Meme (BOME), the traders have opened up new positions leading to an OI surge.
Photo: Santiment
Similar to Open Interest, BOME’s volume has also increased. As of now, the volume is at $659.06 million, marking the highest level since May 23.
BOME Price Action Ahead
On the technical chart, the BOME price is showing bullish action ahead. An analysis of the BOME/USD chart shows that the meme coin has successfully broken out of the descending triangle pattern established in June. This breakout indicates a possible change in market sentiment, potentially paving the way for additional upward price momentum for BOME.
In this instance, BOME’s price has risen above the support line, indicating a potential bullish reversal and positioning the token for further gains.
Photo: TradingView
Another key technical development is the status of the Exponential Moving Average (EMA), a tool used to assess a cryptocurrency’s trend. Importantly, the 20 EMA (blue) has crossed above the 50 EMA (yellow) for the first time since May, which may signal increasing bullish momentum for BOME.
This arrangement represents a golden cross which is typically a bullish sign. If the setup remains the same, the BOME price is likely to breach the resistance at $0.013. In this situation, the meme coin will rally all the way to $0.015 or $0.017.
Traders should keep a close eye on the meme coin. If Book of Meme cannot maintain its current momentum or if profit-taking increases, this forecast could be undermined. In such a scenario, BOME might drop to $0.0079.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
