The Basic Attention Token (BAT) declines in the short term, trying to find support before finally resuming its bullish movement.
BAT had declined below a descending resistance line since April 10 when it hit a record price of $ 1.69 at the time. He was rejected by the line for the fifth time (red icon) on November 25.
However, BAT erupted the next day and hit a new all-time high of $ 2.02 on November 28.
Even though BAT has since declined, technical indicators are still bullish.
The MACD, which is created by both short and long term moving averages (MA), is positive. This means that the short-term AD is moving faster than the long-term average. This indicator is a staple of uptrends.
While the RSI has generated a bearish divergence (green line), it is still above 70 which also indicates that the trend is bullish.
If the decline continues in the near term, the $ 1.40 area should provide support.
Short term movement
The six hour chart suggests that BAT will fall at least to the $ 1.40 support area. It created a double top, which is considered a downtrend, meaning a decline should follow.
On top of that, the price created a long upper wick (red icon), a sign of selling pressure, and the RSI generated a bearish divergence.
Therefore, a short-term downward movement would be likely.
BAT wave number
Cryptocurrency trader @Thetradinghubb featured a BAT chart, indicating that it is likely to rise to at least $ 1.25.
Since the tweet, BAT has exceeded the target and hit a new all-time high price on November 28.
BAT appears to be in wave four of a five wave upswing. The fourth wave is corrective, which means BAT is likely to move downward until it completes this phase.
There is considerable support near $ 1.80 created by:
- 0.5 support level of Fib retracement
- Previous descending resistance line
- Previous ascending parallel channel
A drop to the $ 1.80 level would also complete a pullback of the fourth wave, an event in which the fourth wave ends in a sharp drop before the bullish movement continues.
After that, another increase would likely complete the fifth and final wave.
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