Since March last year, Basic Attention Token has been moving within a sort of Flat “Falling Wedge” described by the upper and lower trendlines. In its trip, BAT has described a perfect A-B-C-D-E corrective path on which many have been able to “sail” the waves in a predictive manner.
Today, we are attending another “decisive” moment for BAT, approaching again to the upper trendline after rebounding on “e”.
As you can see in the chart, BAT has also crossed the 200 Days Moving Average and the 50 Days Moving average seems willing to cross it as well.
In my opinion, it would be uncanny that this time BAT would not manage to break the historical resistance after having completed a full ABCDE correction pattern but, of course, it is still possible.
The strategy this time seems obvious, BAT meeting resistance at 0.22 USD, and so, the price action becomes interesting…Two options then:
1) Sustained increase of volume bringing BAT to overpass the trendline and tracing a possible target close to 0.6 USD:
2) Extraordinary amount of Selling orders accumulated at the same level, BEARS prepared with their “hammers” ready to launch BAT to visit again the Lower trendline and restest it around 0.10 USD:
My most likely option IMO: I think that having an RSI index and volume showing an slight divergence are giving some clues about what is going to happen next… the second option has more probabilistic chances to occur, however, nothing is for sure in this market and we will have to see how is going to be the “fight” around the Resistance line…
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.