The popularity of meme coins continues to rise, with the recent surge in the price of Brett indicating that the trend is far from over. Brett, which describes itself as PEPE’s best friend on the Base chain, has seen a significant 113% increase in value over the last four days, bringing its price to $0.18. However, investors may want to exercise caution when considering this particular meme coin.
Brett’s price is currently hovering close to the $0.20 mark, which would mark a new all-time high for the asset. However, the Relative Strength Index (RSI) suggests that the meme coin may be overbought, increasing the likelihood of a correction in the near future. The RSI is a momentum oscillator that measures price movements, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.
The high level of overbought conditions, combined with the significant liquidations of short contracts on the network, point towards a potential correction in Brett’s price. Over $840,000 worth of short contracts have been liquidated in the last ten days, indicating a bearish sentiment among traders. The large number of open short contracts in the futures market further adds to the likelihood of a price correction for Brett.
Given the current market conditions, it is probable that Brett’s price will decline in the coming days. The meme coin may see a drop to $0.16 or lower, with the possibility of a further decline to $0.10 if profit-taking continues. However, if meme coin enthusiasts continue to HODL (hold on for dear life), Brett’s price could potentially rally to $0.20, negating the bearish outlook.
It is important to note that this analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, and investors are advised to conduct their own research and consult with a professional before making any financial decisions. BeInCrypto is committed to providing accurate and unbiased reporting, but readers are encouraged to review the Terms and Conditions, Privacy Policy, and Disclaimers on their website for more information.
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