BAT Has Surged 250% From 2019 Low — $0.5 Soon?
Basic Attention Token has seen a wonderful surge of 250% from the 2019 low to where it is currently trading at around $0.3614. The cryptocurrency has seen a further 31% increase in the past 30 trading days alone, but has been struggling since topping over around the $0.44 level.
BAT is now ranked in 24th position in the market cap rankings, as it presently holds a $457 million market cap valuation.
In this article, we will take a look at the potential and timeframe for BAT to rise and reach the $0.5 level again. For BAT to hit the $0.5 target level, it will need to increase by a total of 38% from the current trading price. The last time BAT managed to reach the $0.50 level was on April 21, 2019, when the cryptocurrency reached a high around $0.5045. However, this high was very short-lived, and BAT/USD ended up closing the day at around $0.44. The last time BAT/USD had managed to close above $0.50 was during April 2018.
Let us take a look at the BAT/USD market over the medium term and highlight some potential areas of support and resistance moving forward.
Basic Attention Token Price Analysis
BAT/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at the BAT/USD chart above, we can clearly see the coin surge by a total of 250% from the low, placed in early February 2019. We can see that the cryptocurrency continued to surge throughout the year, before reaching the high of around $0.5045 during April 2019 and rolling over.
We can see that during May 2019, BAT/USD went on to fall further lower until finding support at the 100-day moving average level around the $0.2784 price region. BAT/USD rebounded at this support and is now trading at the $0.34 level.
We can also see that there is a short-term descending trend line at the top of the market that BAT/USD has been struggling to break above since late April 2019.
What Is the Current Trend?
The current short-term trend for BAT/USD is now considered to be neutral until price action can break back above the $0.44 level. For this market to be considered as bearish, we would need to see price action fall and break beneath the support at $0.27.
Over the longer term, considering that BAT/USD has risen by 250% in 2019 alone, we can assume that the long-term trend will remain bullish.
Where Is the Resistance Toward $0.5?
If the bullish pressure reignites and starts to cause BAT/USD to climb higher, we can expect immediate resistance above the market to be located at $0.38 and $0.3952. The resistance in this area is strengthened by the descending trend line which lies in this area.
If the buying pressure continues above the descending trend line and above $0.40, we can expect further higher resistance above to be located at $0.42, $0.4313, and $0.44. Above $0.44, higher resistance then lies at $0.45, $0.4639, and $0.4770. The resistance at $0.4770 is further bolstered by the long-term bearish .382 Fibonacci Retracement level (drawn in red), measured from the January 2018 high to the February 2019 low.
Above this, the bulls will need to contest resistance at the short-termed 1.272 Fibonacci Extension level (drawn in blue), priced at $0.4927, before being able to make an attempt at the target level of $0.50.
If the bullish pressure continues above $0.50, further resistance above can be located at $0.5193 and $0.5372.
What If the Sellers Regain Control?
Alternatively, if the sellers start to push the market lower, we can expect immediate support toward the downside to be located at $0.36, $0.34, $0.32, and $0.30. Beneath $0.30, further support then lies at $0.2784 and $0.26.
What Are the Technical Indicators Showing?
The technical indicators suggest that buyers should be cautious, as the Stochastic RSI is trading in overbought territory. This caution is further extended by the RSI, which has recently dipped beneath the 50 level, indicating that the bears have taken recharge of the market momentum.
BAT has seen an explosive growth of 250% from the 2019 low, making it one of the strongest performers in the top 25 projects. However, the market has recently been struggling after breaking back beneath the $0.40 level. The technical indicators suggest being cautious over the next few days as a retracement may be imminent.
Nevertheless, the trend remains bullish, and after a small retracement, we can expect BAT/USD to continue to press further higher and reach the $0.50 level before the end of June 2019.
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