What BAT Hacks into Market Sentiment Means For Its Next ATH

Basic Attention Token has seen better days. In October 2021, it registered a rally of nearly 200% in less than a month. But BAT’s recent chart-topping performances have been mediocre to say the least.

It is down more than 50% from its ATH in November 2021 and found no strength to launch a proper recovery.

BBT/USDT | Source: Tradingview

However, technically it has broken out of a bearish bearish triangle pattern and also breached the 20 DMA. This could potentially be the start of some positive price action going forward. The $0.6 support level has proven its worth and can be trusted in the event of a further market-wide correction. In addition, the USD 1.5 region will also serve as a region of solid resistance before reaching its all-time highs again.

Positive Statistics

Despite the same, some on-chain stats seem to suggest some positivity on the network. The BAT balance on exchanges has been declining gradually since the beginning of the year, along with prices.

This can be interpreted as a sign of increased HODLer activity on the network. One suggests that strong hands in the market are optimistic about the currency.

Balance on exchanges | Source: Glassnode

To give more weight to the above argument, the supply of top addresses as a total percentage of the supply of BAT tokens has also increased over a similar time frame.

Supply held by top addresses as a total % of supply | Source: Santiment

Not all rosy

However, a closer look at some other statistics also paints a disturbing picture.

The currency’s social dominance, for example, has stagnated deplorably. This is quite understandable in the current state of the wider cryptocurrency market.

Social dominance | Source: Santiment

Also, data sourced from Santiment showed that the Basic Attention Token’s network growth has also slowed after it peaked near its all-time high in late November.

Network growth underlines tthe number of new addresses that have 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 momentum, or rather losing it, in this particular case.

Network growth | Source: Saniment

The circulating supply has also increased at periodic intervals – a sign that new coins are regularly entering the market, keeping prices low.

In general, BAT is not a currency you would want to invest in right now. However, it would be advisable to keep an eye on it as it has delivered incredible ROIs in the past and may surprise if the broader market sentiment changes for the better.

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