Should BAT buy now?

Basic Attention Token (BAT) has caught people’s attention for the past 10 days. BAT investors were certainly excited until a week ago. Things have changed quickly since then and it seems like investors are turning the wheel.

Should you help Bat it?

In the week after BAT hit its final ATH, the bears took over the market, posting losses of more than 21%.

If this downtrend is not broken soon, BAT could void the 60% rally by the end of November, with 32% of that after 11/23. have been achieved.

BAT price table | The source: TradingView

Looking at the state of the on-chain indicators, the odds of the current rally recovering are at 50:50.

Investor participation is inconsistent as they are mostly active during times when the market is nearing a local high. In addition, the new addresses that hit the market are mainly due to the uptrend being active.

As a result, the network’s growth indicator rose only during the time BAT was doing well and fell shortly afterwards. This shows that the altcoin is currently lacking solid support from the network for a sustainable price hike.

Network growth | The source: mood

Additionally, since the BAT surge began in November, the market has seen multiple redistribution efforts across the network. The last time this happened was when the price hit the ATH at $ 1.5 in April and the market returned to accumulation shortly after the May crash.

As such, accumulation is not a priority for investors right now, but once the BAT hits low, that sentiment could re-emerge.

Average investment age in dollars (purple) | The source: mood

Investors are currently trying to take profits due to a lack of confidence in the stable uptrend. This is not a good sign in the short term and is also reflected in the price development.

In addition, the current BAT has a correlation of -0.46 with Bitcoin. The drop in the correlation value is why this altcoin rallied in November when the crypto king corrected downward by 20%.

Correlation between BAT and BTC | The source: In the block

However, this is the lowest level the correlation has fallen all year long, which means that BAT price will move south when BTC starts rising again. But with 200% volatility, it is impossible to say for sure which direction it is trading.

BAT volatility | The source: In the block

So it is very important right now to watch the market before entering BAT as the likelihood of hitting a new ATH is currently not high.

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