Several major altcoins have begun to show signs that indicate they will soon begin a new market cycle. We are going to analyze two of them, Cardano (ADA) and Basic Attention Token (BAT), while comparing them with one that has already broken out, WABI.
Cardano has been consolidating for a longer time — since it reached a bottom 30 days before BAT. While both look likely to break out, BAT has a higher chance of decreasing before doing so.
Cryptocurrency trader @imbagsy stated that the three altcoins which have the most bullish outlook are: BAT, WABI, and ADA. Which of them is more likely to break out? How far will it go? Continue reading below in order to find out.
— Bagsy (@imBagsy) November 19, 2019
The ADA price has made a triple bottom at an all-time low price of 400 satoshis. The bottom is combined with a bullish divergence in the RSI which, in the weekly time-frame, often indicates a reversal. This has been a very common occurrence for altcoins over the past two months.
The Cardano price has moved above its 100-day moving average (MA), a sign that we could be at the beginning of an upward trend.
A breakout above the resistance area at 540 satoshis could take us to 660 satoshis — an increase of 30 percent from the current price. The area also corresponds with the 200-day MA.
The ADA price has been trading inside this pattern for 104 days and has made two unsuccessful attempts at moving above this area.
After reaching a low of 989 satoshis, the WABI price created a pattern similar to that of ADA.
After creating an ascending triangle, it broke out above the 200 satoshi resistance area and has been increasing since. The movement was preceded by bullish divergence — albeit not on such high time-frames.
Based on the height of the pattern, a breakout could take us to 3000 satoshis. This is a 20 percent increase from the current price and a 50 percent increase from the breakout price.
The WABI price broke out 94 days after it reached a low on its fourth attempt.
Basic Attention Token (BAT)
After reaching a low of 1572 satoshis, the BAT price has also been following an ascending support line — which is steeper than both ADA and WABI. A breakout could take us to 4900 satoshis, which is a 55 percent increase from the current price.
Additionally, the RSI has generated bearish divergence in the daily time-frame. A similar size bullish divergence preceded the upward move of WABI. Also, the BAT price has created a bearish engulfing candlestick.
BAT is currently on day 75 after the bottom was reached and has made two unsuccessful attempts at breaking out.
To conclude, while WABI has already broken out, ADA and BAT are still below their respective resistance areas.
Since ADA has a longer developing pattern with a more gradual slope it is possible that it will take longer to break out. However, BAT has the possibility of breaking down below its ascending support line and create a differently sloped one.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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Source: Be In Crypto