What to know:
- TAO extended its breakout as bullish momentum stayed firm and buyers controlled price action.
- Analysts flagged $320 as key resistance, with $340 to $360 possible on a breakout.
- TAO reclaimed the 200 EMA, while RSI signaled strong but overbought conditions.
Bittensor (TAO) extended its latest breakout on Tuesday as analysts pointed to strong trend signals and increasing participation in derivatives markets. The token traded near a key resistance area after reclaiming major technical levels, with buyers in control of short-term momentum.
As of writing, Bittensor (TAO) is trading at $318.77, marking a 17.34% increase in a day. The trading volume is showing a strong bullish surge, up 129.36%, and is currently standing at $736.62 million. Over the last week, the TAO coin price has gained 15.01%, according to CoinMarketCap.
TAO Holds Bullish Momentum Above MA7
Crypto analyst Zaylia Grace pointed out that the bullish momentum is sustained. She said that buying pressure is supporting the price.
TAO trading well above the MA7 at $220. She said that level confirmed the strength of the current uptrend. The market structure is also bullish. According to her, TAO is making higher highs and higher lows.
Zaylia Grace also pointed out that the MACD remained positive. This indicated that buyers were in control. She identified the $320 area as the key resistance zone.
If the token breaks through that range, the price could move to $340 to $360. She also mentioned the price level to watch out for on the downside. If the price rejects that level, it could fall to the support at $280.
Also Read: Bittensor Price Surge: Key Levels That Could Ignite $1,000+ Rally
TAO Reclaims 200 EMA Amid Volume Spike
Moreover, another analyst, CyrilXBT, mentioned that TAO had come back above the 200 EMA with the largest volume spike in months. The RSI is at 73. This puts the token in overbought territory. However, strong trends can be overbought for weeks.
The analyst pointed out that the AI narrative is back, and TAO is leading the charge. He said he is not chasing the price near $299.
Instead, he added that he would be looking for a long entry on a pullback in the 200 EMA zone that ranged from $268 to $280. He also listed three targets for a potential move upwards. These were $320, $360, and $400.
Futures Volume and Open Interest Jump
According to CoinGlass data, there is an increase in derivatives activity. Future volume is up by 126.23% to $2.03 billion, while open interest increased by 50.85% to $462.76 million.
The token OI-weighted funding rate is at 0.0036%. This indicates that long positions remained slightly dominant during this rally.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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