Basic Attention Token [BAT] saw a daily price gain of 12.28% at press time, as the expanding ecosystem around Brave triggered renewed attention across the market.
The price surge was accompanied by heightened market participation, with the token’s 24-hour trading volume also jumping 92.35% to $43.24 million.
Notably, this rally emerged as Brave continued its ecosystem expansion, with its browser reaching 128 million monthly active users.
For context, Brave is a privacy-focused web browser that utilizes BAT to reward participants for viewing advertisements and supporting content creators.
Particularly, Brave Rewards Card registrations reportedly crossed 200,000, reflecting growing interest in the financial services of the company.
The role of BAT within Brave’s rewards and payments ecosystem also triggered attention as the platform expanded its reach.
Spot outflows meet aggressive futures buying
Additionally, BAT’s Spot and Futures markets offered further insight into its price recovery, beyond Brave’s ecosystem expansion.
According to CoinGlass, BAT had $434.06K in negative Spot Netflows at press time, indicating that withdrawals outnumbered deposits.
Notably, the latest reading followed substantial exchange inflows earlier in October, including one daily spike exceeding $2 million on the 13th of October. The return to negative Netflows therefore reflected a reduced immediate exchange-side supply.
Additionally, BAT’s Futures Taker CVD indicator remained taker-buy dominant at reporting time, suggesting a more robust cumulative aggressive buying than selling.
These readings together supported BAT’s price recovery, even though a sustained demand remained necessary to extend the price rally.
Negative funding persists despite heavy short liquidations
On the contrary, the derivatives’ positioning continued to reflect considerable bearish sentiment, despite BAT’s market expansion. In particular, the OI-Weighted Funding Rate remained negative at -0.0072%. Also notably, the earlier October readings registered deeper negative spikes, highlighting periods of stronger bearish positioning.
The liquidation figures, however, revealed a significant pressure on the short sellers, with the token recording $197.89K in shorts against $52.53K in longs. Consequently, the short positions accounted for nearly 80% of the total liquidations.
This imbalance ultimately reflected losses among the bearish traders, although the negative funding implied continued short-side positioning.
BAT breaks pennant resistance – Is $0.2160 next?
BAT’s daily chart structure showed a rapid price recovery from $0.1000 before facing a rejection around the $0.2160 zone.
Following the price rejection, Basic Attention Token subsequently consolidated within a bullish pennant flag while defending the $0.1715 support. The most recent candle, however, pushed above the pennant’s descending resistance, reaching $0.1967.
In fact, this emerging structural breakout reinforced the bullish continuation outlook, even though the daily candle had not confirmed the move. The Chaikin Money Flow, meanwhile, remained positive at 0.19, suggesting a continued capital inflow.
The RSI indicator, on the other hand, stood at 66.86, below its Moving Average of 73.85, marking a cooling bullish strength. The indicator nevertheless remained above the 50 threshold, supporting the broader bullish structure.
Ultimately, in case BAT sustains its pennant breakout, the token stands a better chance of revisiting the $0.2160 supply zone again.
Final Summary
- Brave’s growing user base coincided with BAT’s rally and renewed trading activity.
- BAT broke above its bullish pennant, opening another potential test of $0.2160 resistance.
