Basic Attention Token has been drawing a positive chart for months. However, after hitting an all-time high last month, the altcoin remained in a downtrend. The past week has seen BAT rebound notably as investors seize this opportunity.
BAT is now getting everyone’s attention
Driven by fear of loss, investors sold their holdings to make a profit, this fact can be verified by looking at the state of on-chain metrics. In fact, some of that sale also came from the many whales whose volumes rose from $7 million to $60 million.
This was followed by an 11.7% drop in 24 hours, following the 34% increase observed during the week. This price drop wiped out more than a third of all the gains made in the past few days. Moreover, during this time, we’ve seen long-term investors sell their BAT for profit. The following Age Consumed indicator shows what happened in as little as 72 hours. It shows 16.4 billion worth of BAT sales. The indicator in question It is a metric that shows us that coins that have not moved for a long time are starting to move.
This is surprising because BAT is known as an altcoin dominated by HODLers. The average residence time of BAT at an address is about one year. Therefore, we can see that most of the investors in the network are definitely long-term investors and not regular traders. Currently, after 72% dominance of LTHs, investors who bought their BAT less than a year ago make up about 25% of the BAT network.
Also, day traders or short-term investors contribute less than 2.6% to this investor breakdown. Therefore, BAT holders are generally not bothered by such price drops and rallies as they are basically HODLs.
As for new traders looking to take advantage of this opportunity, now might be a good time as BAT has finally made a profit after almost a month. However, after yesterday’s price drop, you may also want to enter after a few green candles have been recorded on the chart.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.