As of the latest data, BRETT has surged by 25.87% from its recent lows on Monday. Despite this positive movement, it experienced some setbacks towards the end of the previous week, with a modest 7-day gain of 8.1%. In contrast, Dogecoin, the primary memecoin based on market capitalization, posted a 31% increase over the same period.
At the current moment, BRETT exhibits a negative correlation of -0.16 with Bitcoin. This correlation became evident when observing that Bitcoin has seen an increase of 15.78% since October 15th, while BRETT has faced a decline of 18.46% during the same timeframe.
Decline in Speculative Interest Surrounding BRETT
Starting from October 13th, the Open Interest to market cap ratio has been on a downward trend. This decline coincided with a period when BRETT appeared poised to break out from a 10-week range but ended up failing just above its recent highs.
The failure to recover the slump in Open Interest implies that Futures market participants lack bullish sentiment towards BRETT and are opting to stay on the sidelines.
Generally, memecoins rely on social media buzz to drive their prices. The diminishing Open Interest signifies the short-term market sentiment and the absence of bullish confidence, which can be disheartening for holders amidst a backdrop of gains in the broader market.
The analysis of the In/Out of the Money around Price metric highlights the $0.088-$0.091 range as a critical support area. Additionally, the resistance levels beyond the current market price seem relatively weak.
Decision: Buy BRETT or Await Changing Conditions?
The On-Balance Volume (OBV) has been gradually declining for the past three weeks after a period of upward trend starting from August. While a reversal in this trend is necessary, the recent price action could present an opportunity for swing traders to enter the market.
By reclaiming the support at the mid-range level of $0.089, setting a stop-loss below $0.088, and targeting the range highs at $0.107 for profit, traders can follow a viable strategy.
On the investor front, there might be some uncertainty. While other major cryptocurrencies have shown bullish momentum by breaking out of their ranges, BRETT remains within its range. Opting to HODL and observe the market instead of chasing quick gains could be a more prudent approach.