The price of Basic Attention Token (BAT) has experienced three significant upward moves over the past two years, with increases ranging from 140% to 300%. All three of them were initiated once the price reached values close to 2000 satoshis. At the time of writing, it was trading at 2300.
Will another upward move begin? If you want to find out, keep scrolling below.
For our previous analysis, click here.
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BAT Price: Trends and Highlights for July 25
- BAT/BTC is inside a significant support area
- The price is inside a descending wedge.
- Momentum indicators support a price increase.
- Moving averages are neutral.
Descending Wedge
Since June 28, BAT has been trading inside a descending wedge.
The wedge is a bullish pattern, making a price breakout more likely.
A look at both the RSI and MACD suggests that BAT is likely to do so.
Bullish divergence has developed during the entire duration of the wedge.
The divergence is very significant since it is occurring inside a bullish pattern and is present in both indicators.
However, a look at the daily moving averages (MA) shows that BAT has not yet confirmed its uptrend.
The Basic Token Attention price is trading between the 10- and 20-day MAs
While the former has started to turn upwards, a bullish cross has yet to occur.
Therefore, we should consider the relation of price to moving averages as neutral.
So, while momentum indicators suggest that the price is likely to break out, it is possible that it trades within the wedge for a period of time.
Movement toward the support line could occur.
Let’s take a look at the short-term to see how likely that is.
Short-Term BAT Price Analysis
In the short-term, the Basic Attention Token price has been trading inside a descending channel.
The BAT price has moved from the resistance to the support lines three times, without any significant fluctuations.
Furthermore, a bearish cross has just occurred between the 10- and 20-hour MAs.
Every other downward move from resistance to support was preceded by a bearish cross.
Therefore, it is likely that the price will decrease towards the support line at 2270 satoshis.
Summary
The BAT price has reached a critical long-term support area. It is trading inside a descending wedge. According to our analysis, BAT will eventually break out from the wedge. However, short-term decreases could occur before. Do you think BAT will break out from the wedge? Let us know 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. Images are courtesy of Shutterstock, TradingView.
