Dogecoin (DOGE) and Basic Attention Token (BAT) have both seen better days. DOGE broke down from its support line earlier this month. Similarly, BAT has also been going down though it has yet to breakdown.
Are things about to turn around for these two cryptocurrencies? Both have experienced gains in the last few days and appear poised to rise higher. However, they may simply be following Bitcoin—which recently spiked to over $8000.
In this analysis, we analyze the current short and medium-term movements of DOGE/BTC and BAT/BTC alongside an assessment of their technical indicators. We do this in order to see if any profitable trade setups emerge.
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 BAT and DOGE 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. A low of 45 satoshis was reached 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 2019.
At the beginning of May, the price of DOGE dropped below 45 satoshis. 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. DOGE dipped into the support area with on May 13 and 14, 2019.
It appears that DOGE has now initiated an upward move. On May 15, the price pushed past 40 satoshis.
On the other hand, BAT/BTC has been following an apparent ascending support line. At the current time, it is trading well above this line. It is possible that the price will drop and validate the support line, which is currently around 3600 satoshis: Since the support line formed, the price of BAT has increased by 107%.
Neither 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 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: