While the majority of cryptocurrencies were dormant or witnessing profit booking after the last leg of the bullish rally at the end of July 2021, BAT or Basic Attention Token has gained huge traction because of its swift and decisive price action. At current levels, we are witnessing an attempt to retest the $1 valuation.
BAT token has been active since May 2017 primarily as an ERC20 token. People often remember this crypto token as it raised over $35 million in a matter of 30 seconds during its first round of ICO. This token is used actively on the Brave browser network to reward and value user attention.
BAT Price Analysis
BAT is currently trading at a premium of 40% over its July 20, 2021 value of $0.4561. Currently trading at $0.700 levels, BAT has a strong resistance of $0.8277 to cross to become truly bullish on longer time frames. There is immediate support active at the $0.6110 level followed by $0.4654 levels.
On technical levels, the 50 Day moving average line will also act as a support level apart from the other technical support levels. The rise in transaction volumes followed by strong buying action indicated a bullish sentiment on August 01, 2021, but the retracement from a new monthly high to close on lower levels has tampered with the positive sentiment.
A bullish inverted hammer candlestick indicates a significant rise on daily price action followed by profit booking induced fall in prices to mark a significantly larger wick has given a bearish signal and until BAT manages to close above the higher levels of the August 01, 2021 candle.
Based on our BAT price prediction, traders should vary in making any position at current levels. Followed by a Doji candle has re-ignited the negative sentiment and we can witness a pullback towards $0.055 levels of the 50 DMA.
On hourly charts, BAT has resistance at $0.7237, which it needs to cross to become bullish. The supports for hourly time frames are active at $0.6250 levels. Since BAT is respecting the trendline, we can dismiss the recent high rise and fall to be an anomaly and consider BAT to be positive as long as it stays on the positive trend.
MACD on hourly charts is indicating a negative swing, which can pull it down up to $0.6250. Maintain caution while entering fresh trades.