Basic Attention Token (BAT) has created a higher low after deviating above a 70-day range high. It could soon make another attempt at breaking out.
BAT has been falling underneath a descending resistance line since reaching an all-time high price of $1.82 in Nov. The downward movement led to a low of $0.24 in June 2022.
The price has been increasing since, and broke out from the line five days later. At the time of the breakout, the line had been in place for 203 days.
Since then, it has been trading in a range between $0.43 and $0.31, and has deviated above both the range high and range low one (red circles).
A breakout above the range high would likely take the price towards $0.64, while a breakdown would take it towards new lows.
Cryptocurrency trader @KaminoCrypto tweeted a chart of BAT, stating that a short-term head and shoulders pattern has been created.
However, the price has bounced considerably since the tweet. This occurred after the six-hour RSI generated a very significant mount of bullish divergence (green line).
So, it seems that the price will make another attempt at breaking out from the $0.43 horizontal resistance area, above which it had deviated (red circle) previously. If this occurs, it would likely lead to an increase towards $0.64.
The BAT/BTC chart is more decisively bullish than its USD counterpart. The main reason for this is that besides the breakout from the long-term descending resistance line, the price has also reclaimed the 1,650 satoshi support area.
As long as it manages to hold on above it, it is likely to initiate another upward movement towards the 2,200 satoshi resistance area and above.