The price of browser startup Brave’s Basic Attention Token (BAT) fell by as much as 20 percent in the past 24 hours.
Trading for BAT officially went live yesterday on Coinbase, the largest cryptocurrency exchange in the U.S., a move that followed the token’s inclusion on Coinbase’s professional platform.
Coinbase initially teased the idea of listing BAT among four other cryptocurrencies on July 13, triggering a 27 percent jump in its price at the time. BAT was able to reach a 3-month high of $0.45 just 11 days later.
Yet as of press time, BAT is trading at around $0.30, representing a 23 percent decline from than yesterday’s high of $0.39.
BAT/USD Daily chart
As can be seen in the above chart, the price of BAT broke above its upper Bollinger Band and hit a three-month high of $0.39 following the Coinbase listing news, though it quickly retreated.
In technical analysis, a price extending above its Bollinger Band is usually a sign of overextension. When combined with an overbought relative strength index (RSI), a pullback becomes more likely as a result.
Given yesterday’s bearish candle close, it’s possible that BAT’s descent is not complete. The middle of the Bollinger Band – known as the basis (middle red-line) – can now be looked to for short-term support.
Falling below the basis would set scope for a further drop to the bottom Bollinger Band where support confluence with the 0.618 Fibonacci lies near $0.22.
Selling the news?
It’s worth noting BAT’s bearish reaction from the market, following its listing on Coinbase, is not the first time a similar situation has taken place.
ZRX and ETC were two other cryptocurrencies added to the exchange this year that were met with initial investor enthusiasm but fell shortly after their official listing on the exchange.