Dogecoin (DOGE) and Basic Attention Token (BAT) recently broke out from their respective patterns. However, they have yet to begin their upward moves.
Will they be able to increase? If so, which one will go first?
In order to answer these questions, we analyze the current short and medium-term movements of DOGE/BTC and BAT/BTC alongside an assessment of their technical indicators. In conclusion, we summarize our findings and compare both cryptocurrencies to see which has more potential for higher prices in the future.
A Breakout for Dogecoin (DOGE)
On Apr 9, the price of DOGE made a low of 52 satoshis. Over the next few days, the price gradually rose. A high of 58 satoshis was reached on Apr 18.
Since then, the price has been decreasing inside the descending wedge outlined below:
The price broke out from this wedge on May 16. It reached a high of 44 satoshis, before decreasing. At the time of writing, it was trading at 38 satoshis.
Will the price begin an upward move or will it continue to decrease?
To determine which is more likely, the price of DOGE is analyzed at two-hour intervals alongside the RSI and the 100- and 200-period moving averages below:
The price of DOGE has been developing a slight amount of bullish divergence since reaching a low of 37 satoshis on May 20.
Furthermore, the 100- and 200-period MAs are very close to making a bullish cross. However, the price is currently trading below both of them. In addition, After breaking out from the wedge, the price made an unsuccessful attempt at breaking out above both moving averages.
The generation of bullish divergence makes us believe that the next upward attempt will be successful. However, it is worth mentioning that this divergence is not present in long-term time-frames.
Thus, it is possible that this will only be a short-term increase.
Do you want to BeInCrypto? Join our Telegram Trading Community for exclusive trading signals, educational content, discussions and project reviews! Images courtesy of Shutterstock, Trading View and Twitter.