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BRETT Price Enters Overbought Zone, Potential Correction Looms

Published

1 day ago

October 14, 2024

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BRETT price has been experiencing significant momentum, with the current uptrend showing strength across multiple technical indicators. The trend appears to be intensifying, supported by a strong surge in price over the last few days.

However, there are signs that the asset could be overbought, which may lead to a correction. Traders should keep an eye on both the uptrend signals and any signs of a potential pullback in the near future.

BRETT Current Uptrend Is Strong

BRETT’s ADX (Average Directional Index) currently sits at 46.87, a significant increase from just 20 two days ago. This sharp rise in the ADX indicates that the strength of the current trend is intensifying quickly.

During the same two-day period, BRETT’s price surged from $0.086 to $0.1124, marking a 30% increase. An ADX value nearing 50 is considered strong, which implies that the upward trend is powerful and likely to continue unless there’s a major shift in market conditions.

The ADX, or Average Directional Index, is a technical indicator used to quantify the strength of a market trend. It doesn’t indicate the direction of the trend, whether it’s up or down, but rather measures how strong the trend is.

An ADX value below 20 generally points to a weak or non-trending market, while values above 25 signal a strong trend. When the ADX climbs above 40, it indicates a very powerful trend, which traders often use as a sign of increased buying or selling pressure depending on the direction of price movement.

With BRETT’s ADX now at 46.87, it indicates that the current uptrend is exceptionally strong. A strong ADX value combined with an upward price trend suggests that the buying momentum is increasing, making it likely that the bullish trend could be sustained in the near term.

BRETT RSI Just Surged into Overbought Territory

Alongside the strong ADX, BRETT’s RSI (Relative Strength Index) has surged dramatically. Just four days ago, the RSI stood at 40, but it has now climbed to 75.69. That suggests that the buying momentum has intensified quickly. This significant increase in the RSI, coupled with a high ADX, paints a mixed picture of both strength and caution in BRETT’s market conditions.

The RSI, or Relative Strength Index, is a technical indicator used to measure the speed and change of price movements. It ranges from 0 to 100 and helps indicate whether an asset is overbought or oversold.

Brett RSI — BRETT RSI. Source: TradingView

Typically, an RSI below 30 indicates that an asset is oversold, signaling a potential buying opportunity. An RSI above 70 suggests that the asset might be overbought, potentially leading to a price correction.

With BRETT’s RSI now at 75.69, it suggests that the asset has entered the overbought territory. This elevated RSI points to strong recent buying pressure. It also hints that the price may have risen too far, too quickly. Although the ADX confirms the current uptrend is strong, the high RSI level could mean that BRETT is due for a correction.

BRETT Price Prediction: A Potential 32% Correction Ahead?

BRETT’s EMA lines are currently showing a strong uptrend, highlighting a bullish sentiment in the market. On October 11, BRETT experienced a significant technical event known as a “golden cross,” where its short-term EMA (Exponential Moving Average) crossed above its long-term EMA.

This crossover is typically seen as a bullish indicator, signaling the potential for sustained upward momentum. EMA lines themselves are tools used by traders to gauge the average price movement of an asset over a set period, giving more weight to recent data points to capture current market trends better.

A golden cross is a bullish technical pattern that occurs when a short-term EMA crosses above a longer-term EMA. This event is generally interpreted as a sign that positive momentum is building. The presence of a golden cross suggests that BRETT’s uptrend could continue. That could potentially drive its price to test the next resistance level around $0.1455.

BRETT EMA Lines and Support and Resistance. Source: TradingView.

However, despite the strong uptrend indicated by the EMA lines and the golden cross, the RSI points to a different potential outcome. With the RSI currently at 75.69, BRETT is in overbought territory. That indicates that the recent buying pressure may be reaching unsustainable levels. If this overbought condition leads to a reversal, BRETT could see a significant price correction.

In such a scenario, key support levels are likely to be tested. That would start around $0.087 and potentially drop to $0.076, which would represent a 32% correction from its current value. This mix of bullish and overbought signals means traders should watch closely, as the market could either continue to push towards higher targets or enter a phase of sharp retracement.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:BRETT Correction Enters Looms Overbought Potential Price Zone

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Why the SEC Is Suing Over Meme Coin Fraud

Published

25 mins ago

October 16, 2024

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The US Securities and Exchange Commission (SEC) filed a lawsuit against an individual connected with the issuance and promotion of the Saitama Inu (SAITAMA), according to a complaint released recently.

This legal action follows a series of joint enforcement initiatives launched earlier this month. The SEC, the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ) charged multiple cryptocurrency entities suspected of fraud and market manipulation.

SEC Pushes Misleading Investors and Pump-and-Dump Allegations

The complaint, filed in the US District Court, alleges that the defendant, Vy Pham, illegally sold unregistered securities in the form of digital tokens. It also accuses Pham of misleading investors and promoting Saitama Inu through deceptive tactics. Some of the cited deceptive practices include fraudulent statements about the coin’s value and prospects.

According to the SEC, Pham leveraged social media channels to promote the meme coin. He artificially inflated the value of Saitama Inu and ultimately profited at the expense of unsuspecting investors. Advertising a strong community backing and future utility, Pham reportedly promised substantial returns to investors.

However, the SEC contends that Pham’s promotional efforts were part of a “pump-and-dump” scheme, a form of securities fraud. In such schemes, the promoter hypes up the asset to boost its price, only to offload its holdings at inflated rates. This leaves other investors with significant losses as the token value crashes.

“Pham misled investors by making grand promises of wealth, and as a result, many individuals lost significant amounts of money,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division, in a statement.

This lawsuit is part of a wider crackdown initiated on October 9 by the SEC, FBI, and DOJ against four cryptocurrency entities. Citing Gotbit Consulting, ZM Quant Investment, and CLS Global, the coordinated enforcement action centers on allegations of fraudulent activities and market manipulation. These are tactics used to deceive investors by fabricating market demand.

Potential Implications for the Future of Meme Coins

Meme coins, unlike Bitcoin or Ethereum, typically lack intrinsic utility or clear use cases, making them highly volatile. They are often subject to rapid price fluctuations, driven by social media trends or endorsements from influencers.

This lawsuit reflects the SEC’s ongoing efforts to ensure compliance with securities laws in the growing cryptocurrency market. The SEC is committed to fighting against fraud, misleading information, and market manipulation. This is as more retail investors flock to digital assets.

“The cryptocurrency market continues to grow, and with it, the risks to investors. The SEC will continue to take action against those who violate securities laws, no matter how new or innovative the assets may be,” Grewal added.

Meme coins can be entertaining and lucrative for some. However, they also come with significant risks, especially when manipulation is in play. The outcome of the SEC’s case against Pham could have far-reaching implications for the future of meme coins.

The court ruling in favor of the SEC could set a legal precedent, bringing stricter regulations on similar digital assets and their promoters.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Litecoin (LTC) Jumps 10%: Can the Bulls Fuel a Bigger Rally?

Published

1 hour ago

October 16, 2024

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Litecoin price is gaining pace above the $70.00 level against the US Dollar. LTC could continue to rise if it clears the $72.80 resistance zone.

Litecoin is showing positive signs from the $65 support zone against the US Dollar.
The price is now trading above $70 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $68.00 on the hourly chart of the LTC/USD pair (data feed from Kraken).
The price is up over 10% and might continue to rise if it clears the $72.80 resistance zone.

Litecoin Price Gains Bullish Momentum

After forming a base above $65, Litecoin started a fresh increase. LTC price broke the $68 and $70 resistance levels to move into a positive zone, like Bitcoin and Ethereum.

The price gained over 10% and even cleared the $72 level. A high was formed at $72.74 and the price is now consolidating gains. It is stable above the 23.6% Fib retracement level of the upward move from the $65.29 swing low to the $72.74 high.

Litecoin is now trading above $70 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $68.00 on the hourly chart of the LTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the upward move from the $65.29 swing low to the $72.74 high.

On the upside, immediate resistance is near the $72.00 zone. The next major resistance is near the $72.80 level. If there is a clear break above the $72.80 resistance, the price could start another strong increase. In the stated case, the price is likely to continue higher toward the $75.50 and $78.00 levels. Any more gains might send LTC’s price toward the $80.00 resistance zone.

Are Dips Supported in LTC?

If Litecoin price fails to clear the $72 resistance level, there could be a downside correction. Initial support on the downside is near the $71.00 level.

The next major support is forming near the $69.00 level, below which there is a risk of a move toward the $67.50 support. Any further losses may perhaps send the price toward the $65.00 support.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is above the 60 level.

Major Support Levels – $71.00 followed by $67.50.

Major Resistance Levels – $72.80 and $80.00.

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Canary Capital Aims for Litecoin ETF After XRP ETF Submission

Published

3 hours ago

October 16, 2024

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Nashville-based investment firm Canary Capital filed for a Litecoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). This comes on the heels of Canary and BitWise filing for an XRP ETF earlier this month.

Litecoin’s official site made a statement after the ETF filing went public.

Canary’s New ETF Attempt

Nashville-based investment firm Canary Capital filed for a Litecoin (LTC) ETF with the Securities and Exchange Commission (SEC) today. This comes less than a week after Canary submitted an XRP ETF application, showing a multifaceted approach. Canary’s documents show it filed with CSC Delaware Trust Company for both attempts; BitWise also used it for its XRP ETF.

Litecoin published a positive statement about this ETF filing on its website, greeting this new development. It called special attention to Canary Capital’s founder, Steven McClurg, who was “former co-founder and Chief Investment Officer” at Valkyrie Funds. Valkyrie was among the first applicants for a Bitcoin Futures ETF several years ago.

“Steven established Canary Capital to drive innovation and deliver actively managed private strategies to meet institutional demand for sophisticated cryptocurrency investment solutions. If approved, the ETF will provide both consumer and institutional investors with wide-spread direct exposure to Litecoin,” the statement read.

October has seen a high level of action in the crypto ETF market so far. Bitcoin ETFs are currently surging with demand, and these three new applications took place in fairly quick succession. The prevailing opinion is that Solana is more likely to win the next ETF approval, but these predictions have not deterred proposals for LTC or XRP.

In the past 24 hours, Litecoin’s price has increased by around 7%. There have been signs that LTC may rally this month if whales move the needle, but this has not materialized. So far, on-chain data suggests a slight uptick, but nothing substantial has occurred.

Litecoin Price Performance. Source: BeInCrypto

Although approval for this ETF would be a substantial win for the crypto industry, Bloomberg analyst James Seyffart noted that several exchange-traded products (ETPs) already carry LTC. He mentioned both a Swiss and a German product and added that Grayscale already has a Litecoin ETP in the US.

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