- BRETT could not match the performance of BTC or DOGE in recent weeks
- Both the Open Interest and price action painted a neutral to bearish long-term outlook
Brett [BRETT]was up 25.87% from Monday’s low at the time of writing. However, by the end of the previous week, the company was experiencing losses and was only up 8.1% in seven days. For comparison: Dogecoin [DOGE]the market’s leading memecoin by market capitalization, rose 31% in seven days.
Source: InHetBlok
At the time of writing, it had a negative correlation of -0.16 with Bitcoin [BTC]. This became clear when we consider that BTC has risen 15.78% since October 15, while BRETT has lost 18.46% of its value during the same period.
Speculative interest in BRETT is waning
The ratio of open interest to market capitalization has been declining since October 13. It was during this period that BRETT was likely to break past a 10-week mark, but failed just above local highs.
The decline in OI has also not recovered. This suggested that futures market participants were not bullish on BRETT and preferred to remain on the sidelines.
Memecoins generally need hype and social media engagement to increase their prices. Open Interest is a good insight into short-term market sentiment and the lack of bullish conviction while the rest of the market was making gains can be interpreted as discouraging for holders.
The in/out money around price metric showed that the $0.088-$0.091 zone was a key support zone. Also, resistance levels above the press time market price were weak in comparison.
Buy BRETT or wait until circumstances change?
Source: BRETT/USDT on TradingView
The OBV has been slowly declining over the past three weeks after trending higher since August. This trend needs to change, but the price action provided a buying opportunity for swing traders.
The token regained the mid-level of $0.089 as support. A stop-loss below $0.088 and a take-profit target of the highs in the range at $0.107 would be a viable trade.
Realistic or not, here is BRETT’s market cap in BTC terms
On the other hand, investors may be more conflicted. Other major coins posted bullish gains and broke their range formations, while BRETT languished within one. The more pragmatic course would be to HODL, rather than chasing the early runners.