Basic Attention Token snubs crypto market decline as BAT jumps over 70% in two days

Basic Attention Token broke away from overall crypto market trends to chart a new ATH. Image by BeatingBetting on Flickr
Basic Attention Token broke away from overall crypto market trends to chart a new ATH. Image by BeatingBetting on Flickr

Key Takeaways:

  • Baisc Attention Token (BAT) reached a new record high on Nov 26.
  • However, the overall crypto markets fell 11% on Friday.

NEW DELHI (CoinChapter.com) — Basic Attention Token (BAT) broke free of the overall crypto market decline to register a new ATH on Friday.

BAT, a token that powers the blockchain-based Brave browser ecosystem, jumped 45.97% on Nov 26, going from a low of $1.292 to a high (ATH) of $1.886.

In detail, users receive BAT as a reward for watching ads from a pool of verified advertisers on the Brave browser. Advertisers pay Brave in BAT to finance their ad campaigns. These funds are then distributed among fund creators and users.

Meanwhile, the overall crypto market cap (TOTAL) fell to $2.35 trillion, with Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) falling more than 5% in the last 24 hours. The broader Bitcoin and crypto sell-off wiped out nearly $300 billion from the markets before prices recovered.

With increased equity market volatility, crypto investors should be on guard. Because of the institutional love affair, bitcoin is substantially vulnerable to moments of exit from risky assets when it sells off everything, regardless of the outlook. And its severe sell-off risks dragging the entire cryptocurrency market down with it.

Alex Kuptsikevich, senior market analyst at FXPro, told Forbes.

News of a vaccine-resistant new strain of Coronavirus from South Africa, Hong Kong, and Botswana jolted international financial markets, with the S&P 500 future falling 2.3%. Furthermore, the MSCI A-PAC index is also down 1.8%.

Also Read: Feed Every Gorilla FEG Coin launched its 2.0 version testing.

On the other hand, anti-risk assets like treasury bonds are gaining interest from investors.

The Crypto market fell due to FUD over a new Coronavirus strain. Source: TOTAL on Tradingview.com
The Crypto market fell due to FUD over a new Coronavirus strain. Source: TOTAL on Tradingview.com

The crypto market also reacted to the news, losing 11.6% between high ($2.66 trillion) to low ($2.35 trillion) levels. The intraday fall was the highest since Sept 21. Further decline is likely, as the price of crypto-assets continues to fall.

BAT Price Charts

BAT prices have been decreasing alongside a descending trendline since Apr 10, when it reached its previous ATH. Basic Attention token tested the resistance four times since then but failed to move above it. BAT retested the descending resistance on Thursday before finally moving above it to chart a new high.

However, prices have since pared, with BAT now having resistance at $1.632. If BAT continues its uptrend, bulls would likely try to reclaim the current ATH level. A move above immediate resistance would likely target $1.78. On the other hand, a sustained uptrend would likely push prices to resistance at $1.89, near the Brave token’s recent high.

BAT prices flew upwards, reaching a new ATH. Source: BATUSD on Tradingview.com
BAT prices flew upwards, reaching a new ATH. Source: BATUSD on Tradingview.com

A downward move would likely see BAT seek support at $1.425. Historically, the Basic Attention Token has followed an ATH with a downwards movement (Red arrows in the chart) almost equal to the uptrend. If history repeats, BAT might fall below $1.

Also Read: Oasis Network (ROSE) price charts new ATH on back of ecosystem fund, Meta partnership.

However, BAT has support at $1.26, where bulls would likely try to arrest the downtrend. Also, profit-taking by retail traders might pull BAT down to $1.137 before any recovery occurs.

Meanwhile, trend-based momentum oscillator MACD is strongly bullish for BAT. Bars on the MACD histogram indicate the MACD line (difference of 12-day and 26-day EMA) moved above the MACD signal line (9-day EMA of MACD) on Nov 25.

MACD turned bullish for BAT on Nov 25. Source: BATUSD on Tradingview.com
MACD turned bullish for BAT on Nov 25. Source: BATUSD on Tradingview.com

The MACD histogram bars further increased on Friday, indicating the MACD line is moving further away. As such, bullish momentum doesn’t seem likely to decline any time soon.

However, the relative strength index has reached 72.81, indicating BAT is currently in the overbought region. An RSI value above 70 indicates an asset is likely to reverse its ongoing trend. As such, bulls would be watching RSI levels very carefully for the time being.

At the time of writing, BAT was trading at $1.498, up 5.45% on the day.

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Basic Attention Token, Basic Attention Token snubs crypto market decline as BAT jumps over 70% in two days

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