BOME market sentiment shifts to bearish: Is a pullback ahead?

• BOME has declined by 4.89% over the past day.
• Market indicators suggest the uptrend is losing momentum and a pullback is imminent.

Over the past month, memecoins have experienced a strong upward momentum, reviving optimism of a memecoin-driven bull run. BOOK OF MEME [BOME] has been a major part of it all.

As such, since hitting a local low of $0.0056, BOME surged to reach a local high of $0.011.

However, since then, the memecoin has experienced a strong market correction. At the time of writing, BOME was trading at $0.009244. This marked a 4.89% decline over the past day.

While the memecoin has gained 30.09% weekly, the latest price action raises questions over the sustainability of the uptrend.

What BOME’s charts say

According to AMBCrypto’s analysis, BOME was seeing a shift in market sentiment. This shift implied that the memecoin will see a pullback before attempting another uptrend.

Source: TradingView

For starters, Bome’s ADX has surged from a low of 13 to 31 at press time. While ADX was rising, +DI was declining from a high of 45 to 36. This showed that the current trend was losing momentum.

Additionally, the Relative Strength Index has dropped from 76 to 61 while its MA has increased from 48 to 57. This suggests that sellers are attempting to dominate the market.

Source: Coinglass

Looking further, BOME’s Long/Short Ratio dropped below 1 to 0.9585, with shorts taking 51.06% of total positions. This implied that on a daily timeframe, most investors were anticipating prices to decline.

Source: Coinglass

Equally, the memecoin’s trading volume had declined from $2.03 billion to $512.14 million. This marked a 74.77% decline over the past week.

There was thus less capital inflow into the memecoin, signaling reduced demand and participation.

Read BOOK OF MEME’s [BOME] Price Prediction 2024–2025

Simply put, BOME is experiencing a shift in sentiment to bearish. If this persists, the memecoin will decline further.

A pullback will see BOME find its next support at $0.008485 before attempting another uptrend. Subsequently, if the bulls retake the market, the memecoin will reclaim the $0.01 resistance level.