The closest resistance area is found near 46 satoshis. If the price breaks out from the triangle, it is likely to provide a reversal.
The closest support area is found near 34 satoshis.
The DOGE price has been trading inside the triangle for more than a month. Furthermore, its increases and decreases have been slow. However, it is approaching the point of convergence between support and resistance.
Therefore, it is possible that the price will soon make a decisive move.
Basic Attention Token Price: Inside a Descending Wedge
On May 10, the BAT price reached a low of 4438 satoshis. A rapid upward move began and the BAT price reached a high of 6010 satoshis the next day.
It has been decreasing since, trading inside the descending wedge outlined below:
It seems as if the BAT price broke out from the wedge on June 7. However, this was not a rapid breakout, rather a very slow movement. Afterward, the price has been decreasing, finding support above the previous resistance line of the wedge.
Will the BAT price continue to increase?
To determine that, BAT is analyzed alongside the RSI and the 10- and 20-day moving averages (MA) below:
We stated that the BAT price reached a low on May 9, which marked the beginning of the wedge. During this time, the RSI has generated successively higher values. This is known as a bullish divergence and often precedes price increases.
However, the price is trading below both the 10- and 20-day moving averages — but they are very close to making a bullish cross.
If a bullish cross were to occur, it would add support to the possibility that the price would begin an upward move.
If it does, where will it meet resistance?
BAT Reversal Areas
One resistance area and one support area is traced for the BAT price below:
The closest resistance area is found near 5100 satoshis. If the BAT price breaks out from the wedge, it is likely to reach this area. We believe that this is likely to occur.
Conversely, the closest support area is found near 4000 satoshis. We do not expect the BAT price to drop below this area.
To conclude, Basic Attention Token (BAT) has possibly broken out from a bullish pattern while Dogecoin (DOGE) is trading in a neutral one.
BAT has created a significant bullish divergence since the beginning of its wedge. However, the moving averages have yet to make a bullish cross.
In the case of Dogecoin, bullish crosses have occurred both in the MACD and between the moving averages. However, the price is trading below both of them.
To conclude, we believe that the BAT price has the potential for higher increases, especially in the short-term.
A summary of our findings is presented in the table below:
|Trading Pattern||Symmetrical Triangle||Breakout From a Descending Wedge||BAT|
|Technical Indicators||Bullish Cross between MAs and the MACD||Bullish Divergence in the RSI,
Possible bullish cross
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.