Bittensor (TAO) sees a remarkable 13% surge, nearing $500 after holding above the $400 support. A golden cross is on the horizon, hinting at a potential bullish continuation. Will the $500 mark be surpassed?
Bittensor (TAO) is experiencing an impressive bullish momentum, with a 13.16% increase in 24 hours, bringing its price to $463.2 after peaking at $474.
After a pullback from its recent peak of $488, TAO successfully defended the key support level of $400, demonstrating significant resilience. The trading volume surged by 122%, reaching $588 million, a sign of renewed interest in this decentralized artificial intelligence token.
Order Delta analysis over the last 24 hours reveals a clear dominance of buyers. With a positive Delta index of 3.89k, the buying volume (32k) outweighs the selling volume (28.19k).
This bullish trend is also evident in the derivative markets, where Open Interest (OI) has surged by 20.59% to reach $260.8 million. This increase suggests that investors are predominantly taking a bullish stance, reinforcing TAO’s momentum.
From a technical perspective, TAO is showing compelling bullish signals. The 50-day Exponential Moving Average (EMA) is rapidly approaching the 200-day Moving Average, indicating a potential “golden cross”.
This crossover, where the short-term moving average crosses above the long-term moving average, often signals a continuation of the uptrend. “Historically, a golden cross on assets like TAO precedes significant rallies,” notes Julien Bittel, a strategist at Global Macro Investor. If this pattern materialises, TAO could quickly test the psychological level of $500.
However, analysts remain cautious. “A decisive breakout above $500 will require sustained volume and a lack of selling pressure,” warns Bittel. In case of failure to maintain this momentum, a correction towards the $403 support level is still possible, particularly if sellers regain control.
The outlook for TAO is optimistic, driven by increasing demand and strong fundamentals within the decentralized AI ecosystem. “Bittensor is benefiting from growing interest in AI projects, and its unique technology is attracting institutional investors,” states Clara Medalie, research director at Kaiko.
Some experts predict that TAO could reach $550 by the end of the quarter if the bullish momentum persists, although macroeconomic uncertainties could impede this ascent.
Over 3 days, the bearish divergence of the Woodies CCI signals caution as a correction could occur in the medium term. In the short term, the CCI remains positive, and TAO is expected to target the $500 mark in the coming days.
In conclusion, with a 13% increase, active trading in the derivative markets, and an impending golden cross, Bittensor (TAO) stands at a crucial juncture. A breakout above $500 could pave the way for new highs, but increased vigilance is needed against a potential correction. Investors should monitor volumes and technical indicators to anticipate the next move.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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