The Solana-based meme coin Book of Meme (BOME) has surged by 23% in the past week, making it the top-performing asset among the top 100 cryptocurrencies by market capitalization during this period.
The price rally over the past week has also led to an uptick in activity in its derivatives market.
Book of Meme Futures Traders Bet on Price Growth
Book of Meme’s (BOME) futures market has seen an uptick in trading activity over the past week due to the price rally. The market has witnessed an influx of traders, as evidenced by its rising open interest.
An asset’s futures open interest represents the total number of active contracts that haven’t been settled. A spike in open interest indicates that more traders are taking new positions.
At press time, the meme coin’s futures open interest is $109.22 million, rising by over 100% over the past seven days. According to Coinglass, it has reached its highest point in the last 30 days.
Further, the traders opening new positions in the BOME futures market are mostly demanding long positions. This trend is evident from the meme coin’s positive funding rate across cryptocurrency exchanges. Currently, the token’s funding rate stands at 0.0029%.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
Funding rates in perpetual futures contracts help keep an asset’s contract price aligned with its spot price. Positive funding rates indicate that more traders are buying the asset, expecting a price rally, rather than selling it and anticipating a decline.
BOME Price Prediction: Meme Coin Eyes Further Rally
As BeinCrypto observed earlier, BOME’s price crossed above the resistance line of its horizontal channel during the Monday trading session. Since then, it has maintained an uptrend and grown by 6%. At press time, the altcoin trades at $0.010.
BOME’s Aroon Up Line at 92.86% confirms the strength of the current uptrend. An asset’s Aroon Line identifies its price trends and potential reversal points.
When the Aroon Up line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently.
Read more: BOOK OF MEME (BOME) Price Prediction 2024/2025/2030
If the uptrend continues, BOME’s price will climb to a 30-day high of $0.011. However, if the market trend shifts and a downtrend commences, the meme coin’s price will drop to $0.006.
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