The Unique Use Case of BAT
Basic Attention Token (BAT) serves as a cryptocurrency in the digital advertising space, compensating publishers for their content, rewarding users for their attention, and offering advertisers a more effective ad ecosystem. All BAT transactions are conducted on Ethereum, and BAT is integrated with Brave, a web browser developed by the token’s creators.
The digital advertising sector has long struggled to meet the needs of users, publishers, and advertisers. However, BAT has shown remarkable success since its adoption in Brave’s global private ad network. According to its website, BAT boasts over 50 million monthly active users and 15 million daily active users.
More than 1.5 million verified creators accept BAT, millions of wallets have been created, and numerous ad campaigns with leading brands have been executed. BAT’s increasing utility in blockchain gaming and partnerships with industry giants solidify its position as a leading altcoin.
Notable partners include eToro, Verizon, Nexo, Ashley, Coinbase, and Binance. With a finite supply of 1 billion BAT in circulation, investors can be assured of a known percentage of total supply ownership.
Falling from Past Highs
Momenteel BAT is over 80% below its January 2022 peak, and the potential for further decline remains. The collapse of FTX has intensified skepticism in the crypto market, and hawkish stances from major central banks have added pressure.
Institutions like the European Central Bank, Bank of England, and U.S. Federal Reserve continue to signal interest rate hikes in 2023 to combat inflation. Analysts warn of a potential global recession, which could weigh heavily on equities and cryptocurrencies alike.
The cryptocurrency market remains highly correlated with equities, and data suggests Bitcoin may not have reached its bottom. Former Binance CFO Zhou Wei predicts prolonged bearish conditions, while Caleb Franzen, a senior analyst, expects Bitcoin to fall toward $14,000 or lower.
Technical Analysis of BAT
Since November 5, 2022, BAT has dropped from $0.34 to $0.17, with its current price at $0.18. BAT faces challenges holding above $0.17, and a break below could pave the way to $0.15.
The chart indicates a persistent downtrend, and as long as BAT trades below this trendline, it remains in a SELL-ZONE.
Key Support & Resistance Levels for BAT
From May 2022 onward, the chart highlights key support and resistance levels. While BAT remains under pressure, a move above $0.25 resistance could target $0.30. The current support at $0.17, if broken, signals a “SELL” to $0.15. A further drop below $0.15 could bring the price to $0.13 or lower.
Factors Supporting a Price Increase
The upside potential for BAT is currently limited. However, a break above $0.25 resistance might lead to $0.30. As BAT’s price is correlated with Bitcoin, a Bitcoin surge above $20,000 could positively influence BAT’s price.
Reasons for Potential Price Decline
Global recession fears and regulatory tightening post-FTX collapse may drive BAT lower. While it holds above $0.17, a break below this support could push BAT to $0.15 or even lower, especially given its correlation with Bitcoin’s performance.
Expert Opinions on BAT’s Future
Experts warn of recession risks and highlight cryptocurrencies’ vulnerability to aggressive monetary policies. Jeffrey Gundlach predicts Bitcoin might drop to $10,000, which could send BAT below $0.15.
