The meme coin craze does not seem to be ending anytime soon, as Brett’s price rise suggests.
The new meme coin has described itself as PEPE’s best friend on the Base chain. However, investors might want to avoid it.
Brett May Not Be a Good Bet
Brett’s price has seen a massive 113% rise in the last four days, bringing the token’s value to $0.18. The meme coin now stands inches away from reaching the price of $0.20, which would result in another all-time high for the asset.
However, the chances of this happening are bleak since the meme coin has already been overbought, as seen on the Relative Strength Index ( RSI ). RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating overbought conditions and below 30 indicating oversold conditions.
Since BRETT is overbought , a zone synonymous with corrections, it would not be surprising to see a dip in the coming days.
This is more likely because crypto traders are pining for the price to fall. This can be observed in liquidations on the network. Over $840,000 worth of short contracts have been liquidated in the last ten days.
The high liquidation is also a testimony to the large number of short contracts open in the futures market at the moment.
Read More: 7 Best Base Chain Meme Coins to Watch in June 2024
Thus, BRETT is highly susceptible to correction.
BRETT Price Prediction: Up or Down?
Brett’s price will likely decline since many factors stand against a potential rally. This puts the meme coin under the threat of a drop to $0.16 or lower. It is currently trading at $0.17.
If the aforementioned conditions are considered, BRETT could observe a drawdown to $0.14, and heavy profit-taking could extend this decline to $0.10.
But if meme coin enthusiasts opt for HODL, the altcoin could potentially continue its rise. This might result in a rally of $0.20, which would invalidate the bearish thesis.
