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- What is the outlook of BAT price in 2022? We explain whether Basic Attention Token will make you rich in 2022 and what to explain.
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The Basic Attention Token (BAT) price has recovered modestly in the past few days in line with the performance of other cryptocurrencies. The token is trading at $0.8863, about 36% above its lowest level this year. However, the price is still about 55% below its all-time high.
What is BAT token?
Basic Attention Token, commonly known as BAT, is the native cryptocurrency of Brave’s ecosystem. Brave is a fast-growing browser attempting to challenge existing players like Opera, Edge, and Google Chrome.
Its operating model is relatively simple. The browser provides the tools necessary to protect its users’ privacy. In addition, it helps them get rid of the popular invasive ads that they encounter on most websites.
Brave makes money by partnering with companies who work as advertisers in its brand. However, instead of pocketing the millions of dollars these companies pay, it distributes the earnings to its users through the BAT token.
Users can decide to pocket all the BAT tokens that they make. Alternatively, they can automatically support publishers on the websites that they visit.
Brave has created a platform that creates a mutual benefit to all members. Advertisers access millions of internet users while users get a smooth browsing experience.
Brave is not just a browser company. The developers have developed other tools that will benefit Brave users. For example, they have created a search engine that works in a similar method to Google. They have also rolled out a cryptocurrency wallet and a video communication platform similar to Zoom Video or Microsoft Teams.
Is BAT a good investment?
Basic Attention Token price has had mixed returns in the past few years. But, in general, the coin has done well since it started to trade. Its price has surged by over 344% since August 29th, making it a better performer than the S&P 500 and the Nasdaq 100 index.
The coin has risen by more than 800% from its lowest level in March 2020, making it a strong performer. However, the coin’s price has lost momentum in the past few months and is down by about 55%. As a result, the market cap of BAT crypto has declined from over $2.5 billion to the current $1.3 billion. In addition, its ranking among cryptocurrencies has declined to about 85.
There are several reasons why some analysts believe that the Basic Attention Token is a good investment. First, unlike many other altcoins like Shiba Inu, BAT has a utility value. This means that it has a real value, which means that it will likely continue doing well.
Second, the ecosystem is showing strong growth. For example, brave announced that it had over 50 million monthly users and over 5 million daily users in its annual report. This is a remarkable performance for a company that was established in 2016. Therefore, the BAT price will continue growing as the number of users rise.
In theory, the value of BAT tokens should decline as the number of people using the platform increase. However, as the number of users increases, many companies advertising on the platform rise.
Third, the BAT token is a good investment because it is in a big industry. Today, there are billions of people using the internet. Therefore, since it has about 50 million users, there is more room to grow.
Will Basic Attention Make you rich?
A common question among new users of Brave’s ecosystem is whether the token will make you rich. There are two main ways to think about this. First, if you are using the Brave browser expecting to get rich from the BAT rewards, that will not happen. For example, I have been using Brave for a while, and I have accumulated just 17 BATs worth about $15.
On the other hand, BAT token may make you rich if you invest in it. As we have noted above, there are reasons to believe that the BAT price will keep rising in the long term.
BAT price prediction 2022: fundamental analysis
So, what is the future of the BAT token in 2022? From a fundamental perspective, several things will affect the price of BAT in 2022.
First, the BAT token price will be affected by monetary policy as the Fed and other central banks implement tightening of the monetary policy. With inflation surging, there is a likelihood that we will see several rate hikes this year from the Fed, ECB, and the Bank of England. Historically, BAT and other cryptocurrencies tend to underperform in a period of tightening.
Second, the Basic Attention Token price will react to regulatory changes. As you recall, the price declined sharply in 2021 after China announced that it would ban all cryptocurrency transactions. This year, we expect regulators in countries like India, the United States, Eurozone, and Japan to unveil their regulations.
Ideally, friendly regulations will be a good thing for cryptocurrencies because they will lead to more clarity about the industry. As a result, we will likely see more institutional investors allocate funds to the industry.
Finally, the Brave ecosystem growth will also impact the coin. This means looking at the number of people who will start using the ecosystem and how users will continue embracing its key features like the wallet and search engine.
BAT price forecast 2022
The daily chart shows that the BAT price has done well in the past few months. However, a closer look shows that the token has formed a double-top pattern at around $1.65. In price action analysis, this pattern is usually a bearish sign. Its chin is slightly below the $0.50 level. Another thing is that the coin’s 100-day and 50-day moving averages have made a bearish crossover.
Therefore, there is a likelihood that the coin will keep falling in the first half of 2022 and retest the key support at about $0.50. However, a move above the resistance at $1.12 will invalidate the bearish view.
Best case scenario for Basic Attention Token in 2022
The best-case scenario for the BAT coin price in 2022 is where bulls can invalidate the double-top pattern and then push the price higher. If this happens, the next key level to watch will be at the all-time high of $1.9430, about 113% above the current level.
Worst case scenario for BAT token in 2022
On the other hand, the worst-case scenario is where the coin’s double-top pattern works rightly, and the price moves below the chin. If this happens, the next key level to watch will be at $0.1265. This level is equivalent to the distance between the double-top and the chin.