Basic Attention Token market update: BAT/USD shows bullish signs

The BAT/USD trading pair is about 2% down on the day, though sentiment remains bullish given spot trading volume and transaction count are rising

Most of the altcoin market is trading lower as of press time, with leading altcoins Ethereum, Ripple, Bitcoin Cash and Litecoin all turning red on the hourly charts.

The same picture is replicated by ERC-20 tokens, with Basic Attention Token trading lower at 2% and 1.75% down in the past 24 hours respectively.

BAT/USD short-term price analysis

The BAT/USD pair is trading with a bullish bias on the daily charts and the 4-hour charts. The pair has lost 2% of its value and price is currently trending lower within a descending channel.

As of press, increased buying is seeing the token’s price print lower lows, with support for higher prints limited by the upper boundary of the channel.

Although prices are likely to dip further, there is a buy signal that has formed on the shorter and medium-term timeframes. BAT/USD could thus break above $0.26 resistance marked by the 23.6% Fibonacci retracement.

BAT/USD 4-hour trading chart (Price feed Kraken). Source: TradingView

On the downside, immediate support is at $0.25 and a dive below it would mean bulls will have to defend prices at the 100-day moving average at $0.246.

Network highlights

According to data from Coin360, Basic Attention Token has a market cap of $370 million and just under $16 million worth of the token has been traded in the past 24 hours.

Free float supply on the Basic Attention Token network has increased over the past month, helped by a surge in interest in DeFi and yield farming. According to Coin Metrics, around 10 million BAT tokens have entered supply since the Compound farming craze hit the market two weeks ago.

The token has seen an upsurge in transaction count, with the seven-day rolling average showing a sharp rise in June. Transactions hit an all-time high at 13,630 on June 27.