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Bittensor (TAO) Surges 40%, Hints at Potential Breakout

Arslan Butt•Monday, August 12, 2024•1 min read

Bittensor (TAO), an open-source, decentralized blockchain protocol, has experienced a significant price surge, sparking optimism among investors. The cryptocurrency climbed nearly 40% over the past week, indicating a potential reversal from its recent correction phase.

TAO’s price is currently trading around $305, with a 3.2% intraday increase. While this represents a substantial gain, analysts caution that a definitive bullish reversal will only be confirmed if the price surpasses the $360 level.

Bittensor’s Strong On-Chain Metrics and Investor Confidence

Contributing to the positive sentiment is a notable surge in Open Interest (OI) contracts. This metric, which measures the total number of outstanding derivative contracts, has jumped 40% in a week, reaching $32 million. This increase suggests growing investor confidence in TAO’s future performance.

Additionally, transaction volume has risen by 2.52% intraday to $58.78 million, indicating increased trading activity and demand for the cryptocurrency.

TAO/USD Technical Analysis Suggests Potential Upward Trend

Technical indicators also support a bullish outlook for TAO. The formation of a double bottom pattern on the daily chart suggests a potential price reversal. A successful breakout above the neckline of this pattern, currently at $359, would confirm this bullish scenario.

While TAO has surpassed the 20-day and 50-day Exponential Moving Averages (EMAs), a decisive move above the 200-day EMA is still required to solidify a long-term uptrend. The Relative Strength Index (RSI) and 14-day Simple Moving Average (SMA) have shown a bullish crossover, further indicating a potential recovery.

Grayscale Investments Adds TAO to Its Portfolio

In a significant development, Grayscale Investments has introduced the Grayscale Bittensor Trust, offering accredited investors exposure to the TAO token. This move highlights the growing institutional interest in Bittensor and its underlying technology.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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