The cryptocurrency market went through a correction after a bullish momentum that took it to new yearly highs. Some altcoins have already bounced off from critical support points giving signs of a continuation of the bullish trend.
Basic Attention Token
After hitting a low of $0.10 on Feb. 6, Basic Attention Token has risen almost 400 percent to reach a yearly high of $0.50 on Apr. 21. Now that it has broken below the support trendline and tested the $0.29 support level, it is bouncing back up.
If the $0.35 support level holds, BAT may continue going up and test the resistance around $0.50 and if that level breaks it could go up to $0.67. However, if the $0.35 support level breaks down this cryptocurrency may go back to $0.29 once again.
There seems to be a head-and-shoulders pattern developing on the 1-day chart. This is a bearish formation that if validated could take Basic Attention Token down 33 percent to test the 200-day moving average, which is currently trading around $0.22. The head-and-shoulders pattern will be invalidated if BAT moves above $0.41 with high volume.
On the 4-hour chart, Basic Attention Token has been trading between $0.34 and $0.39 since May 13. Although there have been certain spikes in the market valuation of this cryptocurrency that have taken it outside of the trading range, it appears to go back into it after a few hours. A break above or below this zone with significant volume will likely determine BAT’s direction for the days to come.
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