- Current price movements suggest that the token could fall further to find a stronger support level.
- The reduced liquidity suggests a near-term pullback is likely, while other indicators point to continued overall bullish momentum.
In the past 24 hours, Brett [BRETT] has gained about 6%, according to CoinMarketCap. However, key bearish signals indicate that the asset could extend its monthly loss of 16.28% in the near term.
AMBCrypto notes that while a decline seems possible, signs of recovery are visible, with the potential for BRETT to reach new market levels in the long term.
A decline followed by a rally for BRETT
After hitting a new all-time high of $0.236 in November, BRETT has fallen at least 40% since then, the chart shows. This loss is expected to extend to a key support level.
Against this backdrop, the recent formation of a green candle on the weekly chart signals a temporary retracement before the asset resumes its downward move.
This decline will likely lead the price to the support level, which has acted as a catalyst for an upward move three times before.
Based on this historical pattern, a similar rally is expected, potentially pushing BRETT back to at least $0.236.
Source: trading view
AMBCrypto notes that while BRETT’s potential decline is driven by lower liquidity, the overall bullish sentiment in the market remains strong.
Liquidity is decreasing, the BRETT is declining, but remains resilient
The Money Flow Index (MFI), a technical indicator that measures the inflow and outflow of money into assets, has started to decline after BRETT reached overbought territory above 80.
Currently, the MFI stands at 72.23 and is trending down, indicating less liquidity flowing into the asset. As a result, BRETT is expected to experience a decline.
However, the MFI remains in the positive zone, indicating that assets are still positioned for a potential recovery.
The Aroon Indicator further supports the bullish outlook for BRETT. As of now, the Aroon Up (orange line) is at 71.43%, well above the Aroon Down (blue line) at 0.00%. When Aroon Up surpasses Aroon Down, it is a signal that the market remains bullish.
Given current technical indicators, BRETT is likely to fall to the support level on the chart after further liquidity outflows. However, the bullish structure will hold as long as the MFI remains above the neutral zone at 50:00 and the Aroon Up remains high.
Large holders don’t buy BRETT
Data from IntoTheBlock indicates a sharp decline in the number of large transactions and trading volume. In the last 24 hours, 2,220 major transactions took place, totaling 3.86 billion BRETT ($56.47 million).
Read Brett’s [BRETT] Price forecast 2024–2025
Normally such large transactions would lead to a significant price increase, but the market has been slow to react, suggesting that large holders are not interested in purchasing BRETT at the moment.
Source: IntoTheBlock
If this trend continues, it could lead to further price declines, pushing BRETT towards the support level before a potential market rally towards higher prices.