Basic Attention Token [BAT] finally broke out of a multi-month descending channel, briefly clearing the $0.20 resistance.
At press time, the altcoin traded around $0.19, up 8.5% on the daily chart and 93% over the week. Trading Volume surged 120%, reflecting stronger market activity.
As BAT crossed $0.20, short sellers felt the squeeze, with over $1.2 million in short positions liquidated. However, the retreat below that level left buyers with another test: absorbing the tokens flowing onto exchanges.
What fueled BAT’s breakout?
Basic Attention Token experienced strong bullish pressure alongside growing interest in decentralized advertising models.
According to CoinMENA, BAT saw increased demand as capital rotated toward altcoins associated with real-world adoption. That growing interest was especially visible in the derivatives market.
CoinGlass data showed Open Interest surged 25% to an all-time high [ATH] of $59 million.
Meanwhile, Derivatives Volume climbed 340% to a record $632 million. Together, rising Open Interest and Trading Volume pointed to greater participation in BAT’s leveraged markets.
Futures Inflows reached $265.7 million, compared with $255.4 million in Outflows. Futures Netflows consequently rose 332% to roughly $10 million.
More capital entered tracked Futures venues than left, although these flows alone could not establish whether traders favored longs or shorts.
Could BAT exchange inflows slow the rally?
After the breakout, more BAT moved onto exchanges, potentially giving holders an opportunity to take profits.
On the 13th of October, Spot Netflows reached a record $2.5 million. At press time, the reading fell to $1.5 million but remained positive.
Positive Spot Netflows indicated that exchange inflows exceeded outflows. These deposits increased the supply available for selling, without confirming that holders had already sold.
For buyers, that creates a practical challenge. Sustaining the rally could require enough demand to absorb any selling from those deposits.
What’s next for BAT?
BAT’s Relative Strength Index (RSI) rose to 85, entering the overbought zone and reflecting strong recent buying momentum.
The Moving Average Convergence Divergence (MACD) also maintained an upward trajectory, supporting the bullish outlook.
Still, an elevated RSI leaves room for a pullback, even while momentum remains strong.
If buyers absorb profit-taking pressure and reclaim $0.20, Basic Attention Token [BAT] could target the $0.28 resistance. Conversely, sustained selling could undermine the breakout and bring the draft’s deeper downside level of $0.10 into focus.
Final Summary
- BAT crypto gained 93% over the week, with record Open Interest accompanying its breakout above the descending channel.
- Positive Spot Netflows raised selling risk, while reclaiming $0.20 could open a recovery path toward $0.28.
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