An ongoing run in BOME fractures the overhead declining trendline with a 35% increase in this cycle. However, the shorter-term trend reveals a 25% downside risk awaiting the meme coin.
Facing a massive demand crunch after hitting the $0.030 peak in March this year, BOME declines quickly to the $0.0071 support. Despite multiple trend reversal attempts, the quick to exhaust bullish powers in the meme coin led to a resistance trendline.
As the ongoing bullish cycle manages to absorb the overhead supply with a breakout run, a bearish pattern warns of a downfall. So, will the breakout rally in BOME continue after months of correction, or is a downfall imminent?
Breakout Run and Trend Reversal in Book of Meme (BOME)
As previously mentioned, the bearish influence of the declining trendline led to a death cross and a long correction spree in BOME. Furthermore, the loss of bullish dominance at the $0.010 psychological mark led to a bearish alignment of the crucial daily EMAs (20, 50, 100).
Coming to the ongoing recovery, the higher high formation from the $0.0071 support breaks above all the crucial EMAs. Furthermore, the bull run breaks the overhead trendline of the descending triangle forming with the $0.0071 baseline.
Currently, the meme coin forms a Doji candle at $0.01076, but the 21.50% jump over the last two days teases an uptrend continuation.
The daily RSI line faces opposition near the overbought territory, resulting in a downtick. However, the reversal might indicate a retest for additional momentum. Moreover, the 20D and 50D EMA are on the verge of a bullish crossover.
Bearish Megaphone Pattern in BOME Risks 25% Drop
The higher high formation in the 4H chart with massive volatility forms a rising resistance trendline. However, the support trendline remains conservative and comparatively flatter, leading to the megaphone pattern in the BOME chart.
Currently, BOME faces opposition from the overhead trendline and warns of a negative cycle within. If the dynamic support of crucial EMAs fails, the meme coin could test the support trendline at $0.0080.
Further, the bearish crossover in the MACD and signal lines teases a trend reversal within the pattern.
Will BOME Crash This Week?
With a long-term breakout in the BOME daily chart, a minor correction is normal for a retest. However, the 4H megaphone is a bearish threat to the breakout rally in the meme coin.
Although the supply is increasing gradually, the multiple number of support elements will likely hold the uptrend. As per the daily chart, the broken trendline retest could prove a bullish reversal point.
According to the Fibonacci retracement levels, BOME struggles to reach the 50% Fibonacci level at $0.013. However, an uptrend continuation will likely surpass it to top $0.020 in the coming months.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
