Basic Attention Token (BAT) Technical Analysis: The One to Watch This Week
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Basic Attention Token is positioning well for a breakout soon from a falling wedge pattern, having spent the last 40 days downtrending between two pinching trendlines. The #48 cryptocurrency by market capital per Cryptocompare, is currently trading at around $0.34 and has banked a 1.23% gain against the US dollar today after returning to a strong uptrending support yesterday.
Trading volume over the last 24hrs has seen a marginal increase but has not been enough to confidently challenge the strong sloping resistance of the falling wedge. This particular resistance has successfully defeated BAT buyers several times over the last two weeks, and is currently preventing BAT’s price from returning to its previous highs.
Will bullish traders be able to overcome this formidable level, or will they continue to capitulate and send BAT’s price crashing further? Let’s take a look.
Basic Attention Token (BAT) Price Analysis
On the daily BAT/BTC chart we can see how the asset has been consolidating inside a falling wedge pattern (white lines), after hitting a temporary bottom at 4,580 Sats. The maximum consolidation point for this pattern sits around a key support zone (red area) between 3,580 and 3,460 Sats, which has been a critical s/r area for BAT in the past.
Right now, the asset is being propped up by an uptrending support (see below) which has caught BAT’s lower lows over the last few months, and has helped drive the price action over to the sloping resistance for another test.
As we can see today, however, the daily candle is red as bulls retreat from the trendline. What we could see happen now is the price to return back to the uptrending support before another upside recovery is launched.
Looking at the daily momentum indicators it appears that bears still remain in control of the asset but buying volume is beginning to show signs of improving. The MACD histogram has now flipped above the signal line, and the 12MA is just beginning to converge above the 26MA.
The RSI is hovering above the oversold region for now, but if it breaks below the 30% level it could help bring in some new buying support.
If the uptrending support breaks, we are likely to see BAT continue consolidating inside the falling wedge towards the aforementioned red support zone. This is where we should see a strong bullish pushback occur, provided volumes are good.
BAT Price Targets
All ROIs are calculated from the asset’s current value at 3,780 Sats.
PT1: 3,900 Sats (3.17%)
PT2: 4,300 Sats (13.76%)
PT3: 4,700 Sats (24.34%)