Solana whales buy BOME amid market crash: A sign of recovery?

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BOME was up by over 5% in the last 24 hours.
Technical indicators looked bearish on the memecoin.

Last week’s market crash stirred up bearish sentiment in the market as most cryptos bled. While several panicked, whales used the opportunity to accumulate. Book of MEME [BOME] was one of those cryptos based on Solana [SOL] that whales chose to buy.

BOME initiates recovery

The last few days were disastrous for the crypto market, as most coins, including BOME, lost substantial amounts of market capitalization. According to CoinMarketCap, the memecoin’s value dropped by more than 37% over the past week.

Interestingly, after the market crashed, Solana whales used the opportunity to buy the memecoin. As per a recent tweet from Lookonchain, a whale withdrew 15,751 SOL, worth $2.25 million, from Binance.

It then spent 4,623 SOL, worth $661K, to buy 67.53 million BOME at $0.0098.

The demand among whales provided the much-needed push for BOME to initiate its recovery as the market condition turned bullish.

In the last 24 hours, BOME’s chart turned green as its value spiked by more than 5%. At the time of writing, it was trading at $0.00894 with a market cap of over $493 million.

It was surprising to note that the recent hike in price did not affect market sentiments positively. AMBCrypto’s look at Santiment’s data revealed that the memecoin’s weighted sentiment remained low.

This meant that bearish sentiment around the token was dominant in the market. Notably, its social volume also declined after spiking on the 12th of April, hinting at a drop in popularity.

Source: Santiment

Will BOME showcase a full recovery?

Since BOME’s daily chart turned green, AMBCrypto checked Hyblock Capital’s data to find out whether the memecoin can fully recover its losses in this fresh week.

As per our analysis, the memecoin will face a high liquidation near $0.010. The memecoin needs to rise over that threshold before the memecoin can offset its loss from the previous week.

If a successful breakout happens, then BOME might as well reach $0.013 by the end of this week.

Source: Hyblock Capital

Market indicators unfortunately turned bearish on BOME. For instance, the Relative Strength Index (RSI) registered a slight downtick.

Additionally, the Chaikin Money Flow (CMF) was also resting below the neutral mark. Both of these suggested that BOME’s price action might again turn bearish, which might not allow the memecoin to recapture its lost market cap in the short term.

Source: TradingView

Realistic or not, here’s BOME’s market cap in BTC terms

Nonetheless, like BOME, Solana also showed signs of recovery as its value surged by nearly 5% after a 15% drop last week. At press time, SOL was trading at $148.84 with a market capitalization of over $66.4 billion.

The good news was that the token’s weighted sentiment graph improved, indicating that investors’ confidence in SOL was increasing.