Basic Attention Token & Dogecoin Price Analysis: Possible Breakout for BAT/BTC, Consolidation for DOGE/BTC

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The Dogecoin price (DOGE) and Basic Attention Token price (BAT) began the month of June with a slight increase. However, that was followed by a gradual decrease.

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At the beginning of June, the Dogecoin price initiated an upward move before the price began to decrease. Where will it go next?

Meanwhile, the Basic Attention Token price has yet to begin its upward move. Will it do so?

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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. (Click here for our previous analysis.)

Dogecoin (DOGE) Price: Inside a Triangle

On May 6, the DOGE price reached a high of 45 satoshis. A rapid decrease began, which ended on May 13 with a low of 35 satoshis.

Since then, the price has been trading inside the symmetrical triangle outlined below:

At the time of writing, the DOGE price was decreasing towards the support line of the triangle, after making an unsuccessful attempt at a breakout on June 7.

Will it do so in the future?

In order to answer that, we will analyze the price alongside the MACD and the 10- and 20-day moving averages (MA) below:

A bullish cross between them occurred on June 4. This often indicates that an uptrend has begun. Afterward, the price increased and made an attempt at a breakout. This, however, was unsuccessful and the DOGE price is now trading below both MAs.

Additionally, the MACD made a bullish cross on May 30.

The occurrence of two bullish crosses suggests that it is likely that the Dogecoin price (DOGE) will break out from the triangle. However, the recent price decrease makes this more unlikely.

Below, we have outlined reversal areas for both a breakout and a breakdown.

Dogecoin Reversal Areas

In the case of a decisive move, resistance and support areas can provide a reversal.

One resistance and one support area are traced for DOGE below:

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.

Summary

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:

DOGE BAT Winner
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
Tie

Do you think the price of Dogecoin will initiate a decisive move? Will BAT continue its breakout? Leave your thoughts in the comments below:

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.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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