Key Takeaways:
- Crypto web browser Brave announced the introduction of self serve ads on its platform.
- Its native token BAT took bullish cues to jump 28% since Mar 14.
NEW DELHI (CoinChapter.com) — Blockchain-based web browser Brave’s native token Basic Attention Token (BAT) jumped more than 28% in the week starting Mar 14. The uptrend received further bullish cues from Brave’s latest announcement.
In its weekly community call, Brave announced the introduction of self-serve ads on its browser. In detail, companies can now run their ad campaigns on the browser instead of running every ad campaign through Brave.
As a result, the number of ads on the browser would likely increase, attracting more users and companies to the Brave ecosystem.
The platform offers users BAT tokens as a reward for watching ads from a pool of verified advertisers on the Brave browser. Advertisers pay Brave in BAT to finance their ad campaigns. These funds are then distributed among fund creators and users.
BAT’s recent uptrend has pushed its prices to levels last seen in mid-Feb 2022. Moreover, the Basic Attention Token price has recovered from its losses over 30 days.
However, the uptrend also increases the risk of bears moving to book profits. In addition, BAT seems poised to form a bearish technical pattern on its daily charts.
Basic Attention Token Likely To Form A Death Cross
BAT’s 100-day moving average (yellow wave, 100-day MA) line seems likely to move below the token’s 200-day moving average (red wave, 200-day MA), forming a bearish technical pattern called Death Cross.
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In detail, a death cross forms when a token’s short-term moving average trendline moves below a relative long-term moving average. Traders believe the technical pattern signals negative sentiment and weakness.
If the technical pattern comes to bear, traders would likely start a sell-off. As a result, the Basic Attention Token could fall to immediate support near its 50-day MA (purple wave) line at $0.765.
However, if BAT’s price fails to hold above immediate support, the token would likely fall to support near its 26-day EMA (white wave) at $0.724. Finally, a death cross fueled sell-off could bring the support at $0.688 into play.
The relative strength index might play a spoilsport for the Basic Attention Token’s bull run. BAT’s RSI stands at 61.24, suggesting further price rise might take RSI into overbought regions. In detail, the RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.
When the RSI goes above 70, the asset enters the overbought region, indicating a trend reversal is on the cards. With BAT’s RSI nearing overbought levels, investors who rely on RSI would likely book profits, triggering a correction.
MACD Continues To Give Bearish Signals
Meanwhile, trend-based momentum oscillator MACD remains bullish for the Basic Attention Token. The MACD histogram, which charts the difference between the MACD line (difference between the 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), charted expanding positive bars.
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Expanding positive bars indicate strengthening bullish momentum for the BAT token.
If the Brave token continues its uptrend, BAT will flip immediate resistance at $0.87 before targeting resistance near the 200-day MA (red wave) at $0.942. A move above the 200-day MA could propel the Brave token to resistance near $1 before corrections pull prices back.
At the time of writing, BAT was trading at $0.816, up 3.83% on the day.
