The Basic Attention Token (BAT) price has been in a remarkable rally recently as investors buy the dip. The token is trading at $0.4270, which is about 66% above the lowest level in June. As a result, the token’s market cap has risen to more than $636 million.
Why is BAT rising?
Basic Attention Token is the native token for the Brave browser. Its primary role is to incentivize people to use the browser and its other features. Users can also decide to tip their favorite creators in the internet.
The concept behind BAT is relatively simple. The developers created a chromium browser that has some of the most advanced security features, As part of their growth, the developers partner with companies in all industries that want to reach millions of users.
These companies make their payment and then the ads are shown to its users. These users are then compensated for paying attention to these adverts. At the end of the month, these funds are transferred to their online wallet. Finally, users can decide to withdraw the funds to their accounts.
Brave has become a very popular browser with more than 55 million monthly users. Over 16 million of these people interact with it on a daily basis.
In addition, the team has built more tools as it tries to compete with Google and Microsoft. They have built a search engine, a video communication app, and a cryptocurrency wallet.
Read our review of the Coinbase wallet.
At the same time, they have increased their partnerships. In June, they partnered with Filecoin and integrated its storage platform to the network. They also inked a major partnership with Near Protocol to integrate Aurora into the Brave wallet.
Most importantly, the BAT token is being used to power Brave Swaps, a multi-chain DeFi platform. Still, the challenge for many users is that the BAT price is highly volatile. It has dropped by more than 80% from its all-time high.
BAT price prediction
The daily chart shows that the Basic Attention Token price has made a slow comeback in the past few days. Along the way, it remains above the ascending trendline that is shown in blue. It has also moved above the 25-day and 50-day moving averages. Notably, it has formed an inverted head and shoulders pattern.
Therefore, there is a likelihood that the BAT price will continue rising as bulls target the key resistance at $0.50. A drop below the support at $0.4 will invalidate the bullish view.