Basic Attention Token has seen a price explosion which totals 167% over the previous 90 trading days. Although the market may have seen an 11% price drop over the past 30 days, the cryptocurrency is still trading at a price of $0.3617, which currently puts it in 25th position in the market cap rankings.
Source: CoinMarketCap
In this article, we will take a look at BAT’s potential to break into the top 20 projects by the end of Q2. As previously mentioned, BAT is in 25th position as it currently holds a $457 million market cap valuation. For BAT to enter into the top 20 coins at today’s market cap values, BAT will need to increase its market cap by a total of $294 million.
To be able to increase its market cap by $294 million and reach the top 20 projects, BAT needs to increase its price by 66% from today’s value to reach the $0.6 level. As there are only just over 40 days left in Q2 2019, it will be very difficult for BAT to increase quickly enough to be able to break into the top 20.
However, BAT can still rise up the ranks and come very close to the 20th position. If BAT can increase by a total of 46% and reach the $0.54 level, it would put its market cap value at $669 million and into the 22nd position (assuming all other projects remain constant).
Let us take a look at the BAT/USD market 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 daily BAT chart above, we can see that BAT/USD soared during April to reach a high of $0.5. However, price action was unable to maintain itself at this level, causing price action to plummet.
BAT continued to drop as May 2019 started, until it reached support at the $0.2780 level, provided by the 100-day moving average level. After reaching this level of support, BAT/USD went on to rebound higher to where it is currently trading at around the $0.3585 level.
What Is the Current Trend?
The current short-term trend for BAT is presently neutral until BAT/USD can climb back above and close above the $0.45 level. If BAT was to drop and fall beneath the $0.27 level, then the market trend would be considered as bearish.
Over a longer-termed perspective, BAT is most certainly now in a bullish market as the cryptocurrency has been able to increase by a total of 250% from the yearly low to the current price.
Where Can We Go From Here?
If the buyers can take full control of the market and start to push BAT/USD higher, we can expect immediate resistance above the market to be located at a short-term descending trend line (dashed line), and then at the $0.40 level. If they can break above $0.40, the bulls will encounter further resistance above at $0.407, $0.4313, $0.4499, $0.4639, and $0.4707. The resistance at $0.47 is considered strong due to the bearish .382 Fibonacci Retracement level (drawn in red), measured from the ATH to the February 2019 low, being located in this area.
Above $0.47, higher resistance is then expected at $0.50. If the bullish pressure can take BAT above $0.5, immediate resistance above is located at the 1.414 Fibonacci Extension level (drawn in blue), priced at $0.5193 and then at the $0.53 level. If they can clear $0.53, they will be free to make an attempt at the $0.54 target level.
Beyond $0.54, further resistance lies at $0.55, $0.5575, and $0.5642.
Alternatively, if the sellers step in and push the market lower, we can expect immediate support beneath the market to be located at $0.35, $0.34, $0.30, and $0.27.
What Are the Technical Indicators Showing?
The RSI recently dipped beneath the 50 level, which is a bad sign for the bulls, as it signals that the sellers are now in control of the market momentum. If we would like to see BAT climb further higher toward the target level, we would need to see the RSI rise and climb further higher above the 50 level.
Furthermore, price action is above the 50-day EMA, 100-day EMA, and 200-day EMA, which is a strong bullish signal if BAT can remain above these levels.
Conclusion
Although not impossible, it will be extremely difficult for BAT to increase by a total of 66% to reach $0.6 and enter the top 25 projects by the end of Q2 2019. However, BAT most certainly has the potential to rise and get much close to the 20th position before the end of Q2 2019. If BAT can rise to our established target at $0.54, it will be sitting in 23rd position, ready to enter the top 20 by the end of Q3 2019.
