Why Book of Memes (BOME) and BONK Price Surges May Not Last: These Resistance Levels Pose Upside Threats
Two of the market’s hottest meme coins, Book of Memes (BOME) and Bonk (BONK), have seen significant price surges over the past 24 hours, with BOME pumping over 14% and BONK soaring by 33%. However, technical analysis suggests that these rallies may be short-lived unless the coins can break through critical resistance levels.
BOME’s Uphill Battle
Based on price action, BOME has been in an uptrend since mid-April, recovering from $0.007 to $0.01 after a prolonged downward spiral. However, the coin’s price has yet to surpass the first major resistance level, which coincides with the 0.5 Fibonacci Retracement level around $0.012.
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Show more +If this resistance holds, the downtrend may continue, and we could see prices dipping into lower lows. However, a break above $0.012 could propel BOME to the next resistance levels around $0.014 and $0.018.”
Bollinger Bands Offer Insight
The Bollinger Bands indicator provides further perspective on BOME’s price structure. Currently, the coin’s price is attempting to break above the middle band, a move that could grant bulls enough strength to push it to the top of the band, which is presently around $0.014.
BONK Faces Similar Hurdles
Like BOME, BONK is exhibiting comparable dynamics as it touches the top of the Bollinger Bands, signaling a potential price retracement. Moreover, BONK faces a major resistance level at $0.000027, the exact point where the price currently resides. This confluence with the top Bollinger Band strengthens the possibility of a retracement.
“For any hope of continued upward price movement, we want to see BONK break above the current major resistance level and successfully turn it into support,” stated Captain Altcouin.
Cautious Entries Recommended
Given the technical challenges faced by both BOME and BONK, traders are advised to exercise caution when entering positions on these pairs. Although they have printed strong moves today, these rallies may not be sustainable unless the coins can overcome their respective resistance levels.
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