What to know:
- TAO nears $300 resistance after a 12.72% daily jump and strong volume expansion.
- Analysts see TAO at a key point, with breakout and breakdown risks both in play.
- RSI and MACD stayed bullish as open interest and derivatives volume moved higher.
Bittensor (TAO) is back in the spotlight as traders monitored a key resistance test and mixed signals across the market. The cryptocurrency has remained in focus after its recent price action, and analysts are divided on whether it is attempting a breakout or headed for a decline.
According to CoinMarketCap data, Bittensor (TAO) is trading at $296.30, showing an increase of 12.72% in the past 24 hours. The trading volume is showing a strong bullish surge, up 71.37%, and is now standing at $581.12 million. The token market capitalization stands at $3.16 billion, up 12.47%.
TAO Weekly Structure Turns Bullish
Crypto Lens, an analyst, highlighted that TAO formed a strong bullish weekly candle. The analyst noted that the broader structure is turning bullish. The price is holding up well above the $242 level. This support level is critical in the current structure.
A break above the $300 level could potentially lead to a move up towards the $440 level. The analyst presented that level as the next major upside target. This setup remains contingent on whether or not TAO can break through resistance. So far, the $300 area remains the main level on the chart.
Moreover, another analyst, Alpha Crypto Signal, mentioned that TAO is currently showing an inverse V structure after a strong expansion and a subsequent sharp rejection from the highs. The analyst added that momentum has also turned bearish on the pullback. Lower highs have started to form during the retracement.
Also Read: Bittensor (TAO) Faces Bearish Pressure: $235 Support Critical for $300 Rally
TAO is currently resting on a key horizontal support level. If a breakdown can be confirmed on this level, it would be in line with a distribution structure. In that case, the short bias would remain valid unless price reclaims the lost support.
TAO Derivatives Activity Jumps
CoinGlass data shows that the volume has increased by 48.68% to $1.31 billion. Meanwhile, the open interest has gone up by 28.15% to $354.60 million. The token OI-weighted funding rate stands at 0.0043%.,
RSI and MACD Stay Bullish
The momentum indicators on the TradingView chart show strength. The Relative Strength Index (RSI) is at 78.51. The RSI moving average is at 67.31. These values indicate strong momentum because the token is trading near the resistance level.
The Moving Average Convergence Divergence (MACD) reading is also positive. The MACD line is at 26.5, while the signal line is at 17.7. The histogram sits at 8.9.
These values indicate that the MACD line is above the signal line. The positive histogram indicates the continuation of the bullish momentum in the current session.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Binance Coin (BNB) Slips to $640 as Selling Pressure Mounts
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