Popularly known for its integration with the Brave browser and its ad-free experience, the Basic Attention Token seems to be losing its luster. Broader market sentiment has hit the currency hard. This led to a loss of more than 60% in market capitalization since it reached its all-time high in late November.

Technically, it is now in a very delicate position. It is close to the bottom edge of a descending triangle. Well, significantly below 50 and 200 DMA. It has also seen bad volumes and the RSI has not yet reached oversold territory – so a further decline from here cannot be ruled out.

After that, a breach below the crucial support level of the descending triangle may very well result in a nosedive due to the lack of any meaningful support level after that. So in terms of price action, BAT’s future looks bleak unless broader market sentiment changes. And it continues a rally that breaks past any immediate resistance.

BBT/USDT | Source: Tradingview

However, on-chain stats for the coin offer mixed views. The MVRV-Z score for BAT, for example, shows a good value proposition to buy in the coin, according to data from Santiment. Thanks to the fall, the MVRV-Z score for the coin appears to be in a good position to award a short-term gains entry.

MVRV-Z Score | Source: Santiment

In addition, the supply of top addresses as a percentage of the total supply of the coin has also risen fairly stable. This points to a prolonged HODLer condemnation on the coin. It should also be noted that this surge occurred despite the tragic loss of market cap.

Supply in possession of top addresses (as a % of the total supply) | Source: Santiment

Not everything is hunky-dory, though. Network growth for the Basic Attention Token is also slowing, surpassing its nine-month low. Network participants seem to be losing the confidence and strength to continue building, the poor price action being one of many such reasons.

Network growth | Source: Santiment

The N/A ratio for the coin has also risen several times in recent days, even amid the coin’s declining price. N/A ratio is a ratio between market capitalization and the value of the on-chain transaction. And, in this case, suggests a declining ability to trade coins in terms of volume, despite the poor market cap.

N/A ratio | Source: Glassnode

Moreover, according to data from Glassnode, the number of active addresses on the blockchain bears the brunt of the trap. It is at one of its lowest points since late 2018.

Number of active addresses | Source: Glassnode

So overall, despite a few positives here and there, the combined technical indications and statistics seem to suggest an overarching bearishness in the coin. Therefore, a short position on the coin may be the most viable way to make some short to medium-term gains until the overall crypto market makes a strong recovery.



This post With BAT ready to dive, is there an enticing opportunity?

was published first on https://ambcrypto.com/with-bat-ready-to-nosedive-it-presents-an-enticing-opportunity/

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