Breakout or fallback – BAT may finally be gearing up for a decisive trendadmin
After painfully enduring the bearish market for four months straight, it seems like Basic Attention Token is finally gearing up to declare its next step in terms of price action.
Basic Attention Token breaks the bearish trend
Since the end of November, BAT has been stuck within a downtrend wedge. Furthermore, it has consistently been testing the upper trendline, all the while failing to breach it.
As the wedge got narrower, BAT was forced to test the lower trendline support of $0.621. And, at the moment, on the back of a 10.28% rally, BAT might finally manage to breach the upper trend and close above it.
Whether or not it will test it as support is still questionable since there hasn’t been a ton of support observed from the investors’ end.
Holders’ holdings and whales
This is surprising because unlike the rest of the altcoins in the market, BAT holders are actually in a much better state.
Of the 423.51k addresses on the network, only 20% of them are actually facing losses. The rest, 76.6%, are enjoying profits.
However, over the last three months, the total volume of all transactions on the Basic Attention Token chain has been diminishing. It fell from an average of $48.21 million to its current average of $10.44 million.
In fact, it’s not just investors who have been inactive. BAT whales that cumulatively hold 40.17% of the entire BAT supply have reduced their activity on-chain. This resulted in their overall transaction volumes coming down from a peak of $391 million to just $6.9 million at press time.
Regardless of the same, Basic Attention Token’s social strategies might play in favor of a price rise as the Brave browser token has been running NFT drop contests for investors who swap on their Brave wallets. They are also banking on the opportunity of Women’s Day by sharing World of Women NFTs as prizes.
These tactics actually seem to be helping the token since its social presence has improved significantly over the last couple of days. In fact, its dominance touched 0.7%, climbing higher than Polkadot.