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  • Basic Attention Token records the largest transaction to a centralized exchange wallet in three months.
  • Selling pressure starts to mount on BAT in the wake of the transaction, downside eyes $0.18.

Basic Attention Token, a blockchain-based digital advertising token, saw its price react slightly upwards on Wednesday following the biggest transaction on the network in three months. The transaction was tracked and revealed by Santiment, a leading provider of on-chain metrics and analysis.

Basic Attention Token likely to dump

According to Santiment, the transaction of 25 million BAT tokens was liquidated before being sent to “a fresh centralized exchange wallet.” At the prevailing exchange rate, the transaction is worth $5 million.

The price of BAT jumped slightly after the transaction was completed. However, selling pressure is likely to come into the picture as far as the technical perspective is concerned.

The transaction volume metric by Santiment illustrates a spike in the value transferred on the network, followed by a significant drop. The minor price increase can be attributed to the surge. However, the prevailing low volume hints at a stunted recovery or possibly a breakdown.

BAT/USD price chart

Basic Attention Token transaction volume

The TD Sequential indicator just presented a sell signal on the 4-hour chart in the form of a green nine candlestick. The signal, calling for sell orders, gives credibility to the bearish outlook. Already a bearish candlestick is forming on the chart, with BAT trading at $0.204. If the bearish pressure increases in the near term, BAT/USD might engage reverse gears towards the next support target at $0.18 and $0.175, respectively.

BAT/USD price chart

BAT/USD 4-hour chart

The same timeframe reveals more resistance at the 200 Simple Moving Average. If the declines gain momentum, BAT might breakdown to confirm the anchor at the 100 SMA.

BAT/USD price chart

BAT/USD 4-hour chart

On the flip side, closing above the 200 SMA would invalidate the bearish outlook and place BAT on a recovery path to $0.23. Moreover, stability above the moving average will help shift the bullish camp’s focus to higher levels.