Book of Meme (BOME) price surged to a record high during the weekend, becoming one of the best-performing cryptocurrencies in the industry. BOME jumped to a high of $0.028, bringing its total market cap to over $1 billion. It then retreated and was trading at $0.018 on Monday morning.
Why Book of Meme surged
Book of Meme has come out from nowhere to become one of the biggest meme coins in the world. It is one of the top meme tokens on Solana’s network. The others are the likes of Bonk and Dogwifhat (WIF), which have become multi-billion dollar giants.
As a meme coin, Book of Meme has no major utility. Instead, its price action is mostly hype-driven. And in the past few months, this hype has grown substantially because of the ongoing bull run that has pushed Bitcoin from less than $20,000 in January 2023 to $68,000 today.
In most cases, meme coins tend to do better than cryptocurrencies like Bitcoin, Ethereum, and Litecoin during bull runs. This happens because retail investors or traders believe that these tokens are better alternatives since their prices can easily double in a short period.
For example, one can buy 0.00147 Bitcoins using $100. The same amount can buy more than 5,500 BOME tokens. It will likely take a shorter time for BOME to double than for Bitcoin to move to over $120,000.
Investors are taking profits
A closer look at the transaction history shows that many BOME token holders are selling as the coin drops. As shown here, many token holders are selling, which is a sign that they are taking profits. One of the biggest sellers was a whale who sold BOME tokens worth over $450k. This explains why it has dropped by over 37% from its highest level on Saturday.
Therefore, the question is whether it is safe to buy the Book of MEME dip. I believe that the token will go through some volatility now that many holders have started to sell their tokens.
From a technical perspective, two patterns could be forming: a bullish pennant and a double-top. In most cases, these patterns are usually highly bullish. Therefore, I suspect that the BOME token will bounce back later this week as buyers attempt to retest the all-time high of $0.028.
This price action will depend on the performance of the broader crypto market. If the recent rally continues, there is a likelihood that BOME will join the bull run and vice versa.
