Bittensor price noted a strong bounce-back from the monthly lows surging nearly 40% through the week. The recent surge in the price hints at the formation of bottoming out and breakout of a correction phase. TAO had been in a correction phase since hitting an all time high in April 2024.
Despite gaining an impressive 40% intraweek, the long trend still awaits a bullish reversal above the $360 level. As of now, Bittensor was exchanging hands at aroinid $305, recording a nearly 3.2% rise intraday.
Also, the on-chain metrics noted a significant change in the recent sessions, indicating a continuation in the price. TAO is an open source, decentralized blockchain protocol. It has a live market capitalization of $2.19 Billion and ranks 34th in the cryptoverse.
Open Interest Contracts Grow by 40% a Week
In Tandem with a rise in Bittensor price in the last one week, there has been a notable development in the Open Interest contracts as per the analysts. As per analysts, the Open Interest contracts have surged 40% over the week highlighting high investor confidence.
The OI data has surged from $18 Million to $32 Million a week, rising nearly 12 Million. A 40% jump in the inflow highlights improved investor confidence. As of now, the volume to market cap ratio was 2.54%, suggesting low volatility.
The transaction volume increased by 2.52% intraday to $58.78 Million, indicating a rise in demand. Out of a total supply of 21 Million TAOs,nearly 34.3% i.e. 7.2 Million tokens are currently in circulation.
Is Bittensor (TAO) Ready for a Bullish Reversal
The daily chart highlights a strong recovery from the monthly lows, creating a double bottom pattern. A bullish breakout would be confirmed if the price manages to surpass the neckline of the double bottom pattern at $359.
However, until the TAO sustains below the neckline of $359, it may remain in a correction phase. From a technical standpoint, Tao surpassed the 20 days and 50 day EMAs, indicating a bullish outlook in the short term. However, the bulls need to conquer the 200 day EMA to make a reversal.
At the time of writing, the RSI line was placed at 50.4 points and that of the 14 day SMA line was placed at 44.60 points. Moreover a bullish crossover between both the lines was observed, indicating a recovery in the crypto.
Bittensor price surged nearly 40% over the week, hinting at a potential breakout from its correction phase. Despite this rise, a bullish reversal would be confirmed above the $360 level. Currently trading at around $305, Bittensor saw a 3.2% intraday increase. Open Interest contracts rose 40% to $32 Million, indicating an increase in investor confidence.
Moreover, the daily chart shows a double bottom pattern, with a bullish breakout above the $359 mark. TAO has surpassed the 20 and 50-day EMAs, but needs to conquer the 200-day EMA for a reversal. RSI and SMA lines indicate a recovery trend.
Read the full article here