Basic Attention Token (BAT) rallied to a new high on Nov. 26, even as global markets collapsed altogether over fears over a highly mutated variant of Covid19 detected in South Africa.
BAT’s price rose more than 30% on Friday to hit $ 1.88 for the first time in history, and its market capitalization rose to $ 2.74 billion. Its rise appeared in contrast to the cryptocurrency market which lost up to almost $ 283 billion in the same period.
BAT snubs a crypto crash
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, led the losses by falling as much as 7.5% to less than $ 54,000. Ether (ETH), the second largest cryptocurrency, fell more than 9% to almost $ 4,000. Solana (SOL), Cardano (ADA), XRP, Binance Coin (BNB), and other tokens were synced.
Cryptocurrency traders flocked to BAT, possibly due to its lower positive comparative correlation with major digital assets. According to data tracker CryptoWatch, the 30-day correlation coefficient between the Basic Attention Token and Bitcoin was 0.24, and the same against Ether was 0.27.
That somewhat explains why BAT was able to ignore the downtrend in the market on Friday.
Bullish indicators in play
BAT’s price rally to its record high prompted traders to lock in their interim profits right away. As a result, the token corrected by more than 20% after hitting $ 1.88, thus returning below its strong resistance area around $ 1.50.
In detail, the $ 1.50 level served as resistance to two technical setups that developed on the BAT charts since April. First, the level constituted what now appears to be a bullish Cup and Handle pattern. And second, helped form a broad Rising Channel setup, as shown in the chart below.
At the time of publication, BAT was in the first part of the cup and handle pattern, making a rounded bowl floor called a cup. The second part, if it appears, will be a price correction within a descending channel range, called a handle.
A decisive break out of the trading range of the handle and resistance at $ 1.50 can cause traders to see a higher rise at a level of length equal to the maximum height of the Cup and Handle pattern. That puts the BAT price roughly on its way to $ 2.75 in the coming sessions.
Meanwhile, the profit target for BAT’s ascending triangle pattern, confirmed by more than two higher lows and a flat upper trend line, rises above $ 2.90 after measuring the high of the structure from its point. potential breakout near $ 1.50.
Conversely, a break below the lower trend line of the Triangle would risk invalidating the bullish setup, including the Cup and Handle. If it does happen, the next resistance level appears near $ 0.56 for a final bearish confirmation.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves a risk, you must do your own research when making a decision.
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