In 2024, BRETT emerged as one of the most rapidly growing memecoins within the digital currency space. Initially, it showed great potential to climb the ranks and become one of the top 5 memecoins. However, the prior bullish trend has since subsided, especially after a notably bearish December period.
An analysis of IntoTheBlock data indicates that only 38% of BRETT holders found themselves in a profitable position at the prevailing price level of $0.11. Interestingly, half of the traders were experiencing losses, while 12% were breaking even. This data suggests that a majority of holders had acquired BRETT at prices higher than the current level.
The recent weekly performance data highlights a decrease in interest from large holders towards BRETT. The number of transactions exceeding $100,000 plummeted from 1,727 transactions on January 13 to 138 transactions on January 18. This decline is consistent with the overall decrease in large holder activity witnessed in recent weeks.
Notably, the influx of BRETT into the hands of large holders saw a drop to 347.67 million tokens, while the holdings of these significant investors reduced to 341.11 million tokens. By comparison, the peak inflow and outflow of tokens among large holders stood at 3.42 billion tokens each in mid-December.
The data related to large holder movements confirms the diminishing interest from whales, signaling a general decline in demand. Consequently, BRETT found itself in the 11th position on Coingecko’s list of top memecoins based on market capitalization.
Is BRETT Capable of Stimulating Adequate Demand in its Consolidation Phase?
This decline in whale interest has directly impacted BRETT’s price performance, with the current price standing 50% lower than its peak in December. Despite attempting a recovery within the 0.5 to 0.618 Fibonacci zone, BRETT struggled to witness a substantial rebound.
Conversely, signs of consolidation have emerged around BRETT’s current price point. This begs the question – can this consolidation phase ignite a new wave of accumulation in the coming days? While the discounted price might lure in investors, conflicting signals from on-chain data add an air of uncertainty.
For instance, recent data shows a marginal rise in positive funding rates concerning BRETT in the last 24 hours, hinting at a potential upswing anticipated by derivative traders. Moreover, Open Interest surged from $70.63 million to $86.82 million over the past three days, signifying growing interest in the asset.
In contrast, spot flows for BRETT remained predominantly negative during this period.
Over the last 24 hours, BRETT experienced spot outflows totaling over $902,000, indicating that price movements might be relatively easily influenced.
The resurgence of interest from whales could be the catalyst for a significant market rally, especially in the current environment where memecoins are garnering substantial attention.