BAT Struggles to Sustain Upward Movement as NEM & RVN Break Out3 min read
Basic Attention Token (BAT) has bounced at the horizontal support area at $0.49 but has struggled to sustain an upward movement.
NEM (XEM) has broken out from both a long- and a short-term descending resistance line.
Ravencoin (RVN) has broken out from a descending resistance line.
BAT has been decreasing since it reached an all-time high price of $1.69 on April 9. The downward movement led to lows near $0.42 on May 23 to June 22, after which the token bounced. The bounce validated the $0.49 area as support. The area is the 0.786 Fib retracement support level.
However, the upward movement was short-lived, and BAT has returned to the $0.49 support once more. If a breakdown occurs, the next support area would be at $0.28.
Technical indicators are relatively bearish, since the MACD is negative, the Stochastic oscillator has made a bearish cross and the RSI is below 50.
However, the latter also has generated bullish divergence, a sign of an impending bounce.
The shorter-term two-hour chart shows that BAT has broken down from an ascending wedge, which could have been a leading diagonal.
Currently, it is trading right at the 0.618 Fib retracement support level. It seems to be in the process of initiating an upward movement.
The short-term MACD & RSI are both moving upwards.
If the wedge was indeed a leading diagonal, BAT would be expected to increase at least until $0.72.
- BAT is trading above the $0.49 horizontal support area.
- It has broken down from an ascending wedge.
NEM has been decreasing alongside a descending resistance line since March 3. On June 13, it finally managed to break out, but proceeded to reach another low on June 22. This however validated the line as support (green icon).
The token has been moving upwards since, gradually approaching the $0.24 horizontal resistance area.
Technical indicators are bullish. The RSI is above 50, the MACD is nearly positive, and the Stochastic oscillator has made a bullish cross. These readings support the continuation of the upward movement.
The shorter-term six-hour chart also shows a breakout from a descending resistance line. This aligns with the readings from the daily time-frame in which the token is expected to move towards the $0.24 resistance area.
- NEM has broken out from a descending resistance line.
- There is resistance at $0.24.
RVN has been following a descending resistance line since May 27. While following it, it proceeded to reach a low of $0.04 on June 22. It has been moving upwards since, and on July 4, it broke out from a descending resistance line.
It seems that the token is currently in the process of beginning its upward movement, which is also supported by the MACD & RSI, which are both increasing. The latter has also moved above the 50 line.
If the token continues moving upwards, the next resistance would be at $0.102, a horizontal resistance area.
- RVN has broken out from a descending resistance line.
- There is resistance at $0.102.
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