The ‘Coinbase Effect’ Turns Bearish After BAT Prices Drop Post-Listing
The browser's starting price, Brave's Basic Attention Token (BAT), has dropped by 20% over the past 24 hours.
The BAT transaction was officially broadcast live on Coinbase, the largest cryptocurrency exchange in the United States since the token was included on the official platform of Coinbase.
Coinbase originally heard an idea to list BAT among four different cryptocurrencies on July 13, bringing the price up 27 percent. BAT was able to reach a three-month high of $ 0.45 in just 11 days.
However, the BAT is trading at about $ 0.30, down 23 percent from the $ 0.39 high yesterday.
BAT / USD Daily Chart
As you can see in the chart above, BAT's price was higher than the top of the Bollinger Band and was up three-month high of $ 0.39 after Coinbase listed news.
In technical analysis, prices higher than the Bollinger Band are usually signs of expansion. Combining with the oversold Relative Strength Index (RSI) results in a more difficult retraction.
Near the bear candle of yesterday, there is a possibility that the line of BAT was not completed. The middle part of the Bollinger Band (basic red line) is now available for short term support.
If the standard drops below 0.618 Fibonacci's support is close to $ 0.22.
BAT's market share on Coinbase is not the first time a similar situation has occurred.
ZRX and ETC met investors' enthusiasm for the first time this year, but there are two other Crypto calls that fell shortly after being officially listed on the exchange.
ZRX was most recently added to Coinbase, which was listed on October 16. Its price rose to the eighth week high of $ 1.09 the next day, but has since started a steep descent.
ZRX is currently trading at a price of $ 0.72 on the Binance Exchange and down 33% from its highest since the listing of Coinbase.
In the frame below, the ETC pricing story is similar. Cryptocurrency posted a high price of $ 15.09 on the day it was listed on Coinbase on August 16, but was traded at a 20% lower price after only one week. Currently, ETC trades Binance at a price of around $ 9.55, down 37% from its highest on August 16.
BAT appears to be another victim of the "sell rumors and sell news" trading strategy following the Coinbase listing.
Yesterday 's bearish diary close may find temporary support at $ 0.28 on the upside for the upcoming day towards the Bollinger Band baseline.
Finding acceptance below the base would set the scope for a dip to the bottom band where the 0.618 Fibonacci retracement lies near $ 0.22.
Disclosure: I have written in BTC, AST, REQ, OMG, FUEL, 1st and AMP.
Market chart image through Shutterstock
CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
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