BRETT cryptocurrency falls after hitting new ATH.
- BRETT fell 7.55% from ATH, but sentiment towards the token remained bullish.
- Indicators suggest that the price could fall to $0.14 before a bounce appears.
On June 9, Brett (BRETT), Coinbase Layer 2, a memecoin developed by Base, hit a new all-time high (ATH). As of the mentioned date, the price of BRETT is $0.19.
The price increase pushed its market capitalization closer to $2 billion before falling. At press time, the BRETT cryptocurrency was trading at $0.16 with a market capitalization of $1.61 billion.
The token price fell 7.55% in the last 24 hours. This decline could be related to profit-taking, especially since Memecoin has recorded an impressive 375% rise over the past 30 days.
Source: CoinMarketCap
Is there a local best?
Some developers launched the BRETT cryptocurrency in February 2024 and received the tag “PEPE’s best friend” on Basechain. As the community grew, its development was a response to the dominance of memecoins built on top of Solana (SOL).
As a result, the token became the most valuable cryptocurrency by market capitalization on Base.
Despite the price drop, sentiment surrounding the token remained optimistic. Evidence for this is reflected in AMBCrypto’s analysis of Santiment data.
Weighted Sentiment, powered by an on-chain analytics platform, measures online comments about a project. A positive reading suggests a broader sense of optimism.
On the other hand, negative values of the indicator indicate higher bearish sentiment towards the social platform. Another indicator that AMBCrypto investigated was social dominance that could influence the price of the BRETT cryptocurrency.
When the price reached ATH, social dominance soared to 0.56. This means that discussions surrounding cryptocurrency have increased rapidly. For the price, this could be a signal of some of the best in the region.
Therefore, it is not surprising that memecoins are later tracked again. However, social dominance also declined.
However, a decline in talk may present a buying opportunity before BRETT starts another rally, so the downturn is not an entirely bad sign.
Source: Santiment
BRETT Could Fall Before Another Rally
At the same time, the value of the token may decline. So $0.16 may not be the lowest price. But let’s take a look at BRETT’s potential moves from a technical perspective using indicators.
According to the 4-hour chart, the 0.382 Fibonacci was at $0.12, indicating that this price was nominally bearish. So, if selling pressure increases, BRETT could fall sharply, but it may find support at this point.
Additionally, the 0.618 Fib is located at $0.15, which could be a good entry point if bulls defend the BRETT cryptocurrency price. However, AO (Awesome Oscillator) levels decreased.
Via the dazzling red histogram bar, AO showed that the token’s momentum is heading downward. Strengthening this position was the Moving Average Convergence Divergence (MACD), which measures momentum.
As of this writing, the MACD reading was negative. Exponential moving average (EMA) positions also supported the downtrend. At press time, the 12 EMA (blue) had crossed below the 26 EMA (orange).
Source: TradingView
This indicates that sellers are outselling buyers. Assuming it was the other way around, the price action might have favored buyers.
Realistic or not, the BRETT market cap based on PEPE is:
By the looks of it, the price of BRETT could fall to $0.14 or $0.12. However, this bearish outlook could be invalidated if buying pressure resumes.
In this case, the price could rise above $0.20.
