- BOME saw a steep retracement, but the bulls managed to defend a key support level.
- Sentiment was not yet in favor of buyers, even as prices slowly climbed higher.
Book of Meme [BOME] saw a retracement begin on March 16. Prices fell 49% over the next 24 hours to reach a key support level. Speculator sentiment also tilted in favor of sellers.
With the meme coin, phishers took advantage of the recent success of the BOME token. AMBCrypto reported on these developments, noting that $100 million has already been lost to phishing attacks this year.
Short-term bias appeared bullish again
Source: BOME/USDT on TradingView
A drop of almost 50% in one day was a relatively steep decline, even though a 150% rally occurred in just six hours on March 16.
The Fibonacci retracement levels (light yellow) showed the 78.6% retracement level at $0.0147 being retested as support.
Bulls managed to defend this level and drive prices higher. A move above the $0.0247 level would change the market structure bullishly.
The RSI on the 30-minute chart climbed back above the neutral 50 level, indicating bullish momentum in this time frame.
Although the price action has been bullish, the OBV has been on a downward trend over the past 36 hours. Sales volume was steady and buyers had not yet prevailed.
This could result in BOME not being able to turn the market structure bullishly.
Short sellers seize the opportunity during volatility
Source: Coinalyse
On March 17, BOME fell from $0.0246 to $0.0152. During this 38% plunge, the Open Interest behind the token rose from $40.2 million to $51.8 million.
This rise in OI as prices plummeted was indicative of the opening of short positions.
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This underlined the strong bearish sentiment among speculators. The CVD position also fell quickly. Spot demand has not recovered since then.
The Open Interest continued to linger at the $55 million mark, even as prices slowly rose. The bullish momentum was not yet present.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.