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