Book of Meme (BOME) drops below $0.008 if trend continues

Popular Solana-based meme coin Book of Meme (BOME) has been consolidating within a price range since April 9, forming a horizontal channel.

At press time, the meme coin is trading at $0.0084 and is on the verge of falling below a critical support level.

Book of Meme aims for a new low price

When an asset trends within a horizontal channel, its price fluctuates within a relatively narrow range, bouncing between a resistance level above and a support level below. This happens when a relative balance between buying and selling pressure prevents the asset’s price from moving strongly in either direction.

BOME faced resistance at $0.014 and found support at $0.008. The last time the meme coin traded below this support level was on June 24, when it closed at $0.0072.

Given an increasingly bearish bias towards BOME, the bulls may still be unable to defend this critical support level.

This is confirmed by readings of the token’s Directional Movement Index (DMI). At the time of writing, BOME’s negative Directional Index (red) of 24.77 is above its positive Directional Index (blue) of 15.19.

Read more: BOOK OF MEME (BOME) Price Prediction 2024/2025/2030

The DMI of an asset measures the strength and direction of its price movement. When set up this way, it means that the asset is experiencing more downward pressure than upward pressure. This is a bearish signal that shows that sellers are more dominant than buyers. It is often interpreted as a sign to exit long positions and consider short positions.

Furthermore, the decline in BOME’s Price Volume Trend (PVT) indicator confirms the current bearish sentiment towards the meme coin.

The PVT of an asset is also a momentum-based indicator that measures the price movement of an asset. If it is decreasing, it means that selling pressure is increasing, indicating a bearish trend.

BOME’s PVT began its recent decline on June 27 and has been declining ever since. At press time, the indicator’s value is -13.57 billion.

BOME Price Prediction: Only a Change in Sentiment Can Save This Meme Coin

Mentions of BOME on social media platforms are currently characterized by negative emotions, based on weighted sentiment readings, which stand at -0.53 at the time of writing.

The metric measures the overall market sentiment towards an asset. It tracks the sentiment surrounding the asset and the volume of discussions on social media.

When the value is below zero, most social media discussions about the asset are driven by negative emotions such as fear, uncertainty, and doubt. This is a known harbinger of further price decline.

If this trend continues, BOME could drop to the support at $0.008 and even trade below it.

Read more: How to buy BOOK OF MEME (BOME) and everything else you need to know

However, this prediction will be invalidated if the market sentiment on the meme coin turns from bearish to bullish. This could push its value to $0.009.