Basic Attention Token (BAT) has weakened more than 40% after FTX filed Chapter 11 for bankruptcy and created fears of a domino effect that could drag other crypto exchanges into the mud. The risk of further decline for BAT is still not over, especially after the major central banks reported that they would continue to raise interest rates further.
The European Central Bank, the Bank of England, and the U.S. Federal Reserve reported that they have more work to do in order to bring down inflation. Hawkish messages from central banks fueled the worries of market participants who continue to worry that higher interest rates will harm the global economy.
Because of this, the outlook for risk appetite in the near term is not looking good, and many analysts expect a global recession that could weigh on stocks and cryptocurrencies even more. Caleb Franzen, the senior market analyst, and strategist at Cubic Analytics, believes that the price of Bitcoin is heading down toward $14,000 and might drop even lower. If this really happens, Basic Attention Token (BAT), together with many other cryptocurrencies, would move towards lower price levels.
Technical Analysis of Basic Attention Token (BAT)
Basic Attention Token (BAT) has collapsed from $0.34 to $0.17 since November 05, and the current price stands at $0.18. The price continues to move below the 10-day moving average, indicating that Basic Attention Token (BAT) could fall even more in the upcoming days.
BAT might have a hard time holding above the current support level, which stands at $0.15, and a break below this level would indicate that we could see this cryptocurrency at $0.13 or even below. The upside potential remains limited for now; still, if the price of BAT jumps above $0.25, the next target could be resistance that stands at $0.30.
See Related: Chiliz (CHZ) Price Prediction For January 2023
Conclusion
Basic Attention Token (BAT) remains in a bear market, and the risk of further decline for this crypto is not over, especially after the major central banks reported that they would raise interest rates further in 2023. This is certainly negative news for riskier assets like stocks and cryptocurrencies, and in the days ahead, Basic Attention Token (BAT) might have a hard time holding above the current support level, which stands at $0.15.
