In this post I want to quickly look at Basic Attention Token and why I believe it is close for take-off towards good gains ! I stumbled upon the weekly chart by checking several Altcoins and I found a very interesting chart for BAT. I wanted to share this with you.
Here is a weekly chart compared to the dollar on the exchange Binance :
You can see the indicator CCI (Commodity Channel Index) and OBV (On Balance Volume). Furthermore I have drawn a red channel. This channel is a personal drawing. You can draw channels differently and people will have different opinions on channels. I draw them with trying to find the most touches and I like to count wicks as well.
Now to go into analysis the OBV is looking quite good with accumulation going on for years on BAT. It is still quite high, despite the decent decline we have had so far. This does not surprise me, because the Brave Browser has a great future as long as we support it and use it instead of other browsers like Google Chrome.
However my attention got grabbed because of the CCI and the red channel I have had on for a long time already on this chart. The CCI is getting close to oversold on the weekly and every time this happened, you can see a decent bounce happening to the upside. The closing in on oversold coincides with the red channel being tested for support for several weeks now ! We can see a clear break-out of the channel that has been there for some years and right now we are testing it for support. This is a tricky one, because it has been testing it for weeks now and price is grinding down with it. However, seeing the OBV and the CCI, I see more chance of it moving upwards and taking-off, rather than to break back inside the channel. Breaking back inside this channel would be bad news, but for now we should not contemplate this idea. There is also the possibility of it breaking inside it as a fake-out to the downside, creating oversold conditions and moving back out for good !
Here is a daily chart :
The daily chart is showing something interesting as well. You can see the orange lines that I drew in the different indicators (RSI=Relative Strength Index) and the price. Price is not really moving decisively in a direction (more or less same price), but both RSI and CCI are moving upwards ! This is normally indicative for a move upwards sooner than later. We will see what happens, but if Bitcoin behaves we should see BAT moving upwards.
Targets for the daily chart are around 0,24$ and 0,273$, but if you look more at the long run for BAT (weekly chart) then you can look at targets like 0,44$ for November/December 2020 and for the longer run we should be able to hit 0,56$ and 0,65$.
This is not financial advice and I am not a financial adviser. Do your own research and make your own decisions.