Basic Attention Token has had a glorious 90-day period of trading, as the cryptocurrency has surged by an extravagant 250%, making it one of the strongest performers in the top-ranked projects. While the majority of other cryptocurrency projects have been falling rapidly, the Basic Attention Token has seen a further 8.72% price increase over the past 24 hours, bringing the current trading price up to around $0.43.
The recent price increase has allowed BAT to surge toward the top 20 ranked cryptocurrency projects, and BAT now sits in the 22nd position with a $536 million market cap value.
Image Source: https://coinmarketcap.com/
BAT now only sits a small $21 million in market cap value away from 20th ranked position, Ontology. If the cryptocurrency continues to surge like this, it will enter the top 20 projects within the next few days.
The BAT cryptocurrency is the token used for transactions within the Brave browser itself. Brave is a highly competitive web browser, available for both mobile and desktop platforms, whose goal is to change the advertising industry as we know it. Brave returns agency in the attention economy to the user, by rewarding users in BAT tokens for viewing relevant ads. Furthermore, the Brave browser is a privacy-focused browser that never allows users data to leave the host machine.
Let us take a look at the BAT/USD market and highlight some potential areas of support and resistance moving forward.
BAT Price Analysis
BAT/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at BAT/USD on the daily chart above, we can see that the market had broken above the 100 day moving average toward the end of February 2019 and has not looked back ever since.
After breaking above the 100 day moving average, the market then went on to surge over the following 2 months to reach a high of around $0.50 before rolling over slightly. As the market placed the high at $0.50 it had also created a fresh 12 month high in the process.
BAT is now currently trading at a value of $0.41 as the token creates another run back toward the $0.50 level.
What Is the Current Short-Term Trend?
The current short-term trend is most definitely bullish at this moment in time. For this bullish trend to be invalidated, we would need to see the market drop beneath the $0.40 level. The long-term trend for BAT is also now considered to be bullish, as the market has risen more than 2x from the bottom (around $0.10), which allowed BAT to enter a bullish trading condition.
Where Can We Go From Here?
If the bullish pressure combined with Bitcoin’s price increases, continuing to drive BAT/USD further higher, we can expect immediate resistance above to be located at $0.43 and $0.45. Above this, more significant resistance is then to be expected at the bearish .382 Fibonacci Retracement level (drawn in red), priced at $0.4797. This bearish Fibonacci Retracement is measured from the January 2018 high to the February 2019 low.
Above $0.48, higher resistance is then to be expected at the $0.50 level. If the buyers can continue to break above $0.50, further resistance is then located at $0.53 and $0.57. The final level of resistance to highlight is located at the bearish .5 Fibonacci Retracement level (drawn in red), priced at $0.5962.
What If the Sellers Regain Control?
Alternatively, if the market turns around and starts to fall, we can expect significant support beneath the market to initially be located at $0.40. Support beneath $0.40 is then located at $0.3952, $0.36, $0.3418, and $0.30.
What Are the Technical Indicators Showing?
The RSI has been above the 50 level for the majority of the past few months, which indicates that the bulls have been in complete control of the market momentum over this period. However, the Stochastic RSI has recently initiated a crossover below signal, within the overbought territory, which signals that a small pullback may be incoming for BAT over the next few days.
If the RSI can remain above the 50 level during the pullback, we can expect the BAT/USD surge to still continue further higher above $0.50.
As it sits a small $21 million away in market cap value, if BAT continues to surge as it has been doing, the project will most certainly be welcomed into the top 20 ranked cryptocurrency projects within the next few days.