Known as the Coinbase effect, cryptocurrencies typically undergo appreciation upon listing to Coinbase. Basic Attention Token (BAT), the most recent cryptocurrency to list on Coinbase Pro, did receive a price boost of up to 50% leading up to and after the event, but then sharply declined for consecutive days losing all the gains. However, BAT is one of the top altcoin performers today recording a strong 4% gain.
Coinbase announced on the 2nd of November that it would be listing BAT. The coin appreciated upon the news and moved from around $0.25 to a high of near $0.39 on the 8th November. The coin has since depreciated to around $0.26 after trading at a recent low of $0.245.
One of the reasons that BAT may not have undergone as extreme an appreciation that is typical of assets listing to Coinbase is that BAT is only paired with USDC, a stable coin which is the result of a joint venture between Circle and Coinbase. Trading in BAT essentially forces traders to use USDC and may be one of the primary reasons for BAT not performing as well as other assets which have previously listed to Coinbase Pro.
The decline we have seen from the $0.39 high seems to have met some support at the 50 EMA. Momentum is still with the sellers with both the MACD and RSI decreasing so the next drop may break below this moving average.
- BAT has recently listed on Coinbase Pro but retraces quickly its price boost from the event.
- One of the reasons BAT did not increase upon listing may be that it is only available for trading against USDC.
- The drop BAT is currently undergoing seems to be experiencing some support at the 50 EMA, but with momentum still on the side of sellers, the next drop may break below this moving average.
- BAT is a top altcoin performer today, currently up 4%.