TAO Price Breaks Above Key Level, Ready To Skyrocket To Highs?

• The Bittensor token price has outperformed 94% of the top 100 crypto assets in the last 1 year.
• The TAO token had huge liquidity compared to its market cap.

Bittensor (TAO) crypto has gained significant attention in the crypto market, outperforming 94% of the top 100 assets over the past year. With a recent price surge, increased liquidity, and a breakout from a prolonged downtrend, TAO shows strong bullish momentum.

TAO price surged 15.83% to $375 within the last 24 hours, propelling its market cap to $2.783 Billion. This increase in market capitalization secured the token the 32nd position in the global cryptocurrency rankings, according to CoinMarketCap. Its market cap dominance now stands at 0.13%.

Caution is Warranted Amid Likely Reversal

The rise in market cap was accompanied by a 21% increase in trading volume, bringing the total traded value to $142.536 Million. This contributed to a medium liquidity status for the token, with a volume-to-market cap ratio of 4.91%, reflecting balanced market activity.

Only 35% of Bittensor’s total supply is currently in circulation, with a fully diluted market cap projected at $7.940 Billion.

Bittensor crypto is still 51% below its all-time high of $767.68. However, it is 1,100% above its all-time low which was recorded a year ago. Price volatility remains high, with a volatility index of 10.62%, so it’s hard to rule out short-term price fluctuations.

Market sentiment around TAO crypto remains bullish, though the token’s fear and greed index is currently at 49, reflecting a neutral outlook among investors. The combination of high volatility and market uncertainty could lead to significant price movement in the near term.

Technicals & Latest Price Action Suggest Bulls are Back

The Bittensor price has been in a prolonged downtrend, following a falling wedge pattern that led to a substantial loss in value. During this decline, the token dropped by over 70% from its swing high of $756.87, highlighting the severity of its bearish trend.

This extended period of downward movement reflects the intense selling pressure that has dominated TAO’s recent market performance.

Throughout last year, TAO demonstrated significant volatility, alternating between strong upward trends and sharp, sustained declines. This volatility has made the token’s price movements unpredictable and challenging for traders. However, a notable shift in momentum occurred recently, marking a potential reversal in the token’s trajectory.

The TAO price has successfully broken out of the falling wedge pattern, signaling a bullish reversal. This breakout has been reinforced by the formation of strong bullish candlesticks over the past few days.

Moreover, the price has also surpassed a key resistance level, often referred to as a “change of character” point, further confirming the bullish momentum. This breakout above a critical resistance level suggests robust buyer interest, potentially paving the way for further price gains in the near term.

The TAO price recently broke and sustained above the 20-day and the 20-day EMAs while the two EMAs were forming a golden cross. The token price also broke above the average true range of the supertrend on the daily chart.

TAO/USD Chart by TradingView.com

The histograms on the MACD indicator were strongly bullish. This was followed by the MACD and the signal line trading in the bullish trajectory following a golden cross.

The RSI advanced to the higher levels and traded at a level of 67 at press time. This indicated a rise in the token’s bullish momentum.

The support levels for the TAO crypto are $165.0 and $230.0, followed by the resistance levels of $490.0 and $650.0.

Derivatives Data of Bittensor Token in Tandem the Price Action

TAO experienced significant short liquidations amounting to $370.58K over the last 24 hours. In contrast, long positions worth $49.50K were liquidated, indicating strong buyer dominance in the token’s price action.

This trend suggests that the market is currently favoring bullish sentiment, with short-sellers facing increased liquidation pressure.

Over the past few weeks, TAO’s liquidation chart has shown a consistent pattern of higher short liquidations. This liquidation activity has contributed to the token’s price movement, pushing it to higher levels. The surge in short liquidations has played a key role in driving the recent price gains.

In addition, Bittensor’s derivatives volume saw a 12.9% increase over the last 24 hours, reaching a total traded value of $226.14 Million. This spike in trading volume reflects strong engagement from traders.

The rise in derivatives volume was accompanied by a 29.0% increase in open interest, signaling a growing number of open positions in the market.

The total open interest value now stands at $89.28 Million. Furthermore, the token’s long/short ratio is currently at 1.0121, indicating a slight favor towards long positions, reinforcing the bullish sentiment among traders.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.