Dogecoin (DOGE) and Basic Attention Token (BAT) both appear to be suffering price losses. Can a profitable trade setup be created for either?
In this analysis, we attempt to generate trade setups by comparing the 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.
You can read our previous analysis here.
Dogecoin (DOGE) vs. Basic Attention Token (BAT): Price Outlook
DOGE reached a high of 110 satoshis on Sep 10, 2018. A gradual decrease followed with a low of 45 satoshis on Nov 14.
An attempted recovery brought DOGE to a high of 83 satoshis on Dec 17. Over the next several months, the price dropped again. Lows below 50 satoshis were reached in March and April. Prices spiked at the end of March and then dropped to under 45 satoshis earlier in May.
This movement caused Dogecoin to breakdown from the horizontal support line traced below:
There is a support area near 35 satoshis created from the lows of Aug 2018. At the time of writing, DOGE was trading had dipped into the support area with a wick low of 36 satoshis.
On the other hand, BAT/BTC has been trading along an apparent ascending support line. At the current time, it is trading well above the line. A breakdown does not appear likely.
Price movements are outlined in the graph below:
Since the beginning of the support line, the price of BAT has increased by 107%.
Nether BAT nor DOGE appear to have generated a visible resistance line. Thus, no apparent trading pattern can be traced for either.
To better determine future price movements, we examine shorter-term trading patterns for BAT and DOGE alongside technical indicators.
DOGE Trading Inside a Descending Wedge
On Apr 8, the price of DOGE made a low of 52 satoshis. Over the next tend ays, 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: