What to know:
- TAO open interest rises 17% to $427M, indicating stronger participation and commitment to the trend.
- RSI & MACD confirm bullish reversal, showing stronger buying pressure and early signs of continued growth.
- TAO eyes key $350 resistance level, as analysts highlight a potential breakout that could drive further gains.
Bittensor (TAO) is moving in a positive price trajectory as the general conditions in the crypto market have turned bullish. Furthermore, the TAO price trend is also supported by its rising open interest and volume. According to CoinMarketCap, as of Wednesday, May 6, TAO is currently trading at $312.88, with a 24-hour gain of 10.96%.
Source: CoinMarketCap
TAO Derivative Data Supports Upward Potential
According to Coinglass, the TAO open interest increased notably by 17.35%, reaching $427.18 million, signaling a rise in outstanding derivative contracts, stronger trader participation, and a deeper level of commitment to existing positions and the TAO price trend across the market.
Source: Coinglass
However, trading volume surged significantly, climbing 105.58% to $2.83 billion, reflecting heightened market activity, increased liquidity, and stronger investor engagement across exchanges, indicating growing interest in the TAO price trend.
Also Read: Bittensor (TAO) Builds Pressure: Major Breakout Setup Could Drive Price to $350
TAO Price Trend Turns Bullish With $350 in Sight
Furthermore, crypto analyst Michaël van de Poppe highlighted that TAO is currently testing a major resistance level, yet the TAO price trend remains firmly bullish.
After breaking above a key structural barrier, the asset continues to hold its uptrend, signaling strong buyer control. Despite short-term selling pressure at resistance, momentum suggests this level may soon give way to further upside continuation.
Source: Michaël van de Poppe’s X Post
An interesting vacant zone around the $350 mark is catching eyes, as these areas usually draw the interest of traders in crypto assets.
When TAO achieves this mark, it will indicate its strength and sustainability. Further upside movement from here can pave the way for the TAO price trend to make gains at much higher levels.
Momentum Indicators Support Ongoing Reversal
According to TradingView, the Relative Strength Index is indicating bullish momentum at around 67.76. This level suggests that the TAO price is close to being overbought but still has some room left.
The blue line for the RSI indicator is moving higher and has moved above its yellow line, implying that the TAO price trend is being driven by strong buying interest.
Source: TradingView
Furthermore, the MACD line crossing above the signal line in the blue color recently is another indication of this change. The bullish crossover that took place above the zero line indicates increased strength in the underlying trend.
Moreover, the histogram also changed from red to green colors with larger bars, reflecting increasing strength in the TAO price trend.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Bittensor (TAO) Surges 17% weekly as Bulls Target $380 Resistance Level
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