What BAT latching on to market sentiment means for its next ATH
Basic Attention Token has seen better days. Back in October 2021, it registered a near 200% rally in under a month. But, BAT’s recent performance on the charts has been lacklustre, to say the least.
It has fallen by over 50% from its ATH in November 2021, finding no strength in staging a proper recovery.
However, technically speaking, it has broken out of a bearish descending triangle pattern and breached the 20 DMA too. This could possibly be the start of some positive price action going forward. The $0.6 support level has shown its merit and can be relied upon in case further market wide correction occurs. Alongside that, $1.5 region will also serve as a region of stiff resistance before hitting its all-time-highs again.
Despite the same, some on-chain metrics seem to be picturing some positivity on the network. BAT’s Balance on Exchanges has been falling gradually ever since the beginning of the year, along with the prices.
This can be interpreted as a sign of increased HODLer activity on the network. One suggesting strong hands in the market are optimistic about the coin.
To lend more weight to the argument above, supply held by top addresses as a total percentage of supply of BAT tokens has also been increasing over a similar timeframe.
Supply held by top addresses as a total % of supply | Source: Santiment
Not all rosy
However, a closer look at a few other metrics depicts a worrying picture too.
For example, social dominance of the coin has been deplorably stagnant. This is quite understandable amid the current state of the broader cryptocurrency market.
Also, data sourced from Santiment also found that the Basic Attention Token’s Network Growth has also been on a decline after it peaked close to its all-time-highs in November-end.
Network growth underlines the amount of new addresses that transferred a given coin/token for the first time. Essentially, this chart illustrates user adoption over time, and can be used to identify when the project is gaining or rather losing traction, in this particular case.
Its circulating supply has also been increasing over periodic intervals — A sign of fresh coins entering the market regularly, keeping the prices weak.
Overall, BAT isn’t a coin that you would want to invest in right now. However, keeping an eye on it would be advisable since it has given incredible ROIs in the past and may surprise if the broader market sentiment takes a turn for the better.