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Dogecoin and Basic Attention Token Competing for a Breakout (DOGE, BAT Analysis: May 15)

5 mins
Updated by Valdrin Tahiri
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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: Dogecoin Outlook 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:BAT Outlook 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:
Descending Wedge
The price reached the major support area on May 13, before beginning an upward move. At the time of writing, it was trading at the resistance line of the wedge. Because the descending wedge is a bullish pattern, a breakout is technically more likely than a breakdown. To better assess this possibility, the price of DOGE is analyzed at 6-hour intervals alongside the RSI  below: DOGE RSI On Apr 25 the price reached a low of 45 satoshis. A decrease ensued and a lower low of 34 satoshis was reached on May 13. Similarly, the RSI made a low on Apr 25. However, it has continued to generate higher values since. This is known as bullish divergence and often precedes price increases. Last week, we initiated a long trade. Now let’s see how it has fared.

Long Trade Setup

In last week’s analysis of DOGE, we initiated a trade with an entry of 35 satoshis, stop loss of 33 satoshis and a target of 49 satoshis. This is shown in the graph below: DOGE Long Trade Set Up (May 13) Since then, the price has increased, reaching levels of 41 satoshis. We still believe that the price will reach 49 satoshis. The price movements since we initiated our trade are shown below: Doge new We will assess this trade in our next analysis. Now, let’s move on to BAT.

BAT Is Also Inside a Descending Wedge

On Apr 16, the price of BAT broke out from a resistance line. That resistance line then became a support line. A peak of 9400 satoshis was reached on Apr 20. Since then, BAT has been following a steep resistance line. It dropped from the resistance line and validated the former resistance line as support a on May 8 when the price reached 4500 satoshis. The support and resistance lines combine to create a descending wedge which is outlined in the graph below: BAT Wedge Following May 8’s low, a rapid spike brought BAT to validate the resistance line several times. A gradual decrease has been occurring since. To better assess whether the price will continue to decrease, we will now analyze the price at four-hour intervals alongside the RSI (MA) below: Divergence On May 9, the price reached a low of 4438 satoshis. It continued to decrease and on May 13 reached another low of 4317 satoshis. Similarly, the RSI and the MACD made the first low on May 9. However, they have continued to generate higher values since. This is known as bullish divergence and often precedes price increases. Furthermore, the descending wedge is a bullish pattern, making a breakout likely. Therefore, we will assess the viability of our short trade which we initiated

Short Trade Setup

Last week, we stated:
“A possible trade setup is analyzed with an average entry of 5750 satoshis. The stop-loss is placed well above the resistance line and slightly above the May 6 highs at 6150 satoshis. Our target is set at the support line of the wedge at 3700 satoshis.”
This is shown in the graph below: BAT Short Term Assessment (May 13 Analysis)

The price has not yet reached our target of 3700 satoshis. Rather, it has made a bottom around 4300 satoshis.

The presence of bullish divergence inside a bullish pattern makes us believe that the price will eventually break out from the wedge. Therefore, we have decided to close this trade. Since the price is currently around 4400 satoshis, this is a profit of around 10%.


To conclude, both DOGE and BAT are currently trading inside descending wedges. Furthermore, both have developed significant bullish divergence. In the case of DOGE, this divergence is present only in the RSI, while it is present in both the RSI and the MACD in the case of BAT.

For DOGE, last week we initiated a long trade setup with a very lucrative 7 to 1 risk to reward ratio. The trade is still in effect.

On the other hand, we had a short trade setup in place for BAT. However, due to recent market developments, we decided to close our trade before the target was reached. The trade was closed with a profit around 10%.

To conclude, we believe that both DOGE and BAT will increase in the near future and we believe that they both have similar potential for growth.

A summary is presented in the table below:





Bounced in a major support area

Following an ascending support line


Patterns & Indicators

Bullish divergence developing inside a descending wedge

Bullish divergence developing inside a descending wedge.


Trade Setup Long trade with a 7:1 risk to reward ratio Short trade closed at 10% profit. DOGE

Do you think DOGE and BAT are good investments in the long-term? Let us know 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.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
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...