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- BAT price is breaking out of a descending triangle. However, it lacks the necessary strength
- Volume analysis shows buyers favoring BAT coin
BAT price has formed a descending triangle with support resting at $0.7-$0.73 levels and a diagonal resistance. BAT price is attempting to break out of the triangle. The volume analysis shows higher buying overselling at the present price range; however, despite giving a breakout, the volume hasn’t risen, which might make this a false breakout or push the coin to $0.85 levels and fall back. The market cap and 24-hour volume are $1,155,964,164 and $357,165,486 respectively.
Resistance Breached, Bulls Missing For BAT Coin
Left Image: It seems that the BAT prices have gone consolidated between the $0.85 and $0.7 bands which made the coin breach its crucial support first and then gave a false breakout too. There is a possibility that the coin has gone into the distribution phase and may tumble after this if it breaches $0.7 levels. However, currently, its support lies at $0.77(pivot – P) and $0.7(S-1 Pivot) while resistance at $0.85(R-1 pivot).
Right Image: The price is above 10-EMA, 20-EMA, and 50-EMA, consolidated in the range of $0.75-$0.77. The 200-EMA is another crucial support at $0.62.
The Bollinger bands are contracted, which signifies the continuation of the current breakout’s consolidation and failure. If the Bollinger bands widen up in upcoming sessions, then it might signify that bulls are entering back in coin.
The RSI is in the positive zone above 50 levels, but the coin still lacks momentum. The indicator’s resistance lies at 63-65 zones while support at 50.
The MACD(8,21,5) has flashed green for the bulls, which might bring in the bulls, but the breakout’s failure remains a possibility.
Conclusion
BAT price has given a breakout out of a descending triangle, but the volumes, RSI, and MACD show a lack of bulls’ participation, raising concerns of a failed breakout. Since the coin has breached the diagonal support, it could be in the distribution phase and preparing for reversal.
Support: $0.72-$0.75(10-EMA, 20-EMA and 50-EMA), $0.7(sUpport levels)
Resistance: $0.85(R-1 pivot) and $0.825
