An analysis by Hyblockcapital on X (previously known as Twitter) has flagged a significant rise in liquidations for the Memetic Token (BOME), outpacing other alternative cryptocurrencies in the latest data.
In a brief 15-minute period, BOME experienced liquidations totaling 78.57K, excluding mainstream digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This surge in liquidations set it apart from its counterparts within the same timeframe.
The sudden and drastic price fluctuations have left leveraged traders vulnerable, resulting in a notable increase in liquidations for BOME, shedding light on the escalating levels of volatility surrounding the token.
This flurry of liquidations within a short timeframe indicates a potential upsurge in speculative trading activities involving BOME.
Liquidity Zones Under Scrutiny by BOME
An examination of BOME’s trading activity against the US Dollar Tether (USDT) over the past month reveals multiple liquidity sweeps. These movements across critical liquidity zones have triggered cascading stop-loss orders and forced closures, exacerbating market volatility.
This pattern of events can intensify price fluctuations as automatic position closures lead to further price shifts.
Analysis of the price chart indicates that these liquidity sweeps correlated with sudden upward surges in BOME’s value. This correlation implies that forced liquidations have rid the market of weaker positions, potentially paving the way for a more stable uptrend.
Instances of liquidity sweeps coupled with price spikes are often indicative of a market readjusting itself following periods of turbulence.
Insights from Net Exchange Outflows
Recent data points to a net outflow of $1.69M worth of BOME on October 15, 2024, indicating a predominant trend of withdrawals outweighing deposits. This consistent outflow pattern over recent months hints at an accumulation phase, with token holders transferring assets off exchanges, possibly for prolonged safekeeping.
Despite the steady outflows, the price of BOME has maintained relative stability, punctuated by occasional surges.
The recent price uptick to $0.01042 suggests that investors may be anticipating a further spike in valuation, potentially fueled by token accumulation and diminished selling pressure on exchange platforms.
Growth in Futures Open Interest Signals Market Activity
Data from Coinglass shows a sizeable 47.21% surge in BOME Futures Open Interest, reaching $194.33M as of October 15. This notable rise in Open Interest underscores an influx of leveraged positions, as traders capitalize on market movements.
Supplemented by a 57.06% surge in trading volume, reaching $2.05B, this trend reflects an escalating wave of speculative trading in the market.
As Open Interest expands, heightened market volatility can be expected given the increased exposure of traders to potential price fluctuations.
The recent price uptick for BOME could trigger further market turbulence as leveraged traders adapt to evolving market conditions.