- BRETT had a bearish market structure on the 4-hour chart, while challenging the $0.051 low from earlier in May
- There was the possibility of a range formation and an impulse move back towards $0.09, the local high
Brett [BRETT] saw a strong uptrend in the second half of April, following Bitcoin’s [BTC] rally that took its price from $76k to $111k in May. The memecoin rallied from $0.034 to $0.091 – A 166% move in just under three weeks.
A recent report found that the latest Bitcoin price drop from near $110k to $103.5k was a reset and not a full-blown distribution phase. Therefore, the chances of a BRETT recovery alongside a BTC move appear to be good. The bulls need to rise to the challenge – Will they?
BRETT buyers given discount prices
Source: BRETT/USDT on TradingView
The memecoin was trading at the $0.051 support level once again, after retesting it as support in early May. BRETT, which had been on an uptrend at the start of May, saw its momentum stall near the $0.09-mark. This was just above the resistance level marked in February.
The inability to flip the $0.082-level to support was the first warning of bullish weakness. In mid-May, this level was retested as support a couple more times, before the price took a downturn.
This opened up the chance of a range formation for the token. The OBV reset to its early May lows too, showing that seller pressure was appreciable. The $0.051 support offered a good buying opportunity with reduced risks and a clear invalidation. A drop below $0.045 could flip the bias bearishly.
Source: BRETT/USDT on TradingView
On the 4-hour chart, BRETT seemed to have retraced all the gains it made in the second week of May. After falling to its $0.045 low once again, the token managed to climb back above the $0.051 support level.
However, the OBV continued to trend south. This underlined dominant selling volumes over the past ten days. Additionally, the H4 chart also showed that momentum remained bearish.
When the RSI manages to climb past neutral 50, and the OBV begins to form higher highs and higher lows, a bullish trend reversal would become more likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
