BAT Price Prediction: This price range may be the ideal bounce for BAT

Saif Naqvi
Basic Attention Token
Source: blog.metalplay

A mixed start to the week developed into a bit of a correctional phase as most mid-small cap cryptocurrencies shed gains after Bitcoin slipped below $43K. However, losses observed in Basic Attention Token were not as severe as some of its other counterparts due to a demand zone between $0.99-$0.93. Moreover, a run-up to $1.45 would be possible should this zone continue to buttress BAT’s price. At the time of writing, BAT traded at $1.10, down by 2.46% over the last 24 hours.

Basic Attention Token 4-hour time frame

Source: TradingView

Basic Attention Token is expected to consolidate over the next few days before new longs at its demand zone trigger a rally. The extent of BAT’s jump would most likely depend on near-term resistance levels at $1.12 and $1.19. These zones were also important on the daily time frame as they fostered the 20 and 50 SMA’s (not shown). Once these SMA’s are flipped to bullish, BAT can set up an additional 18%-20% hike before sellers at a supply zone present between $1.36-$1.45.

Until buyers rebuild the market, any short-term pullbacks can be contained till $0.93 and its daily 200-SMA (not shown). However, a lower low created below $0.93 would expose the market to some unpleasant losses. The closest available defense lay at $0.78, translating to another 15% decline in value.

Indicators

BAT’s Squeeze Momentum Indicator (SMI) reflected the current consolidation period. The SMI was bearish-neutral and a host of blue dots showed low volatility in the market. Those gearing for a run-up must wait for the SMI to register its first green bar followed by a yellow dot.

Conversely, the 4-hour Stochastic RSI was deep into oversold territory and suggested that BAT was trading below its intrinsic value. Such a reading was ideal for those wishing to buy BAT at a discounted price level.

Conclusion

As long as BAT consolidates above its demand zone, bulls would have the upper hand moving forward. The next upswing could bring about a near 50% hike if BAT manages to scale past the abovementioned resistance levels.