Key Insights:
- TAO price has nearly reached a breakout above key resistance at $280.
- Open interest surged 28%, showing trader confidence.
- Analysts have projected a potential surge to $480 or even $700.
Bittensor (TAO) price showed an upward trend, hinting at potential breakout opportunities. Technical indicators further supported this positive outlook.
Analysts identified critical resistance levels that could shape future price movements. Bullish chart patterns indicated a substantial TAO price surge might be on the horizon.
Bittensor Showcasing Breakout Potential at $280 Resistance Level
A key level to watch for Bittensor was the $280 resistance point. The price of $TAO has been consolidating within a range for several months. Market analysts believe a breakout above the $280 resistance could significantly surge prices.
According to analyst CryptoMichNL, a successful move above this level could signal the continuation of the upward trend. TAO price chart showed an intense consolidation phase, often preceding major price movements.
Falling Wedge Breakout and $700 Price Target
Bittensor price chart also indicated an ongoing bullish Falling Wedge pattern, besides the resistance level at $280. This is usually a sign of trend reversal, and $TAO has recently broken the upper wedge resistance.
The breakout, accompanied by rising prices, suggests the end of the previous downtrend. It confirmed the onset of an uptrend in the market.
Analysts set the target price at $700 using the Falling Wedge height. TAO price surged from the wedge breakout point, signaling a decisive upward movement. This breakout established a clear price target for the asset’s upward trend.
The overall trend was positive, despite the market facing some resistance. The MACD indicator reinforced the bullish trend lines. The MACD line remaining above the signal line suggested continued upward momentum.
The RSI stood at 56.47 points and is moving upwards, which means bullish momentum accelerates. Buyers’ interest in the asset increased, as reflected by the RSI surpassing the 50 mark. This indicated stronger bullish momentum in the market.
The cumulative volume delta (CVD) was at 13.67K and showed net positive buying volume. Strong green bars also indicated that buyers are in control of the market. These green bars signaled accumulation as investors entered positions.
Another critical factor for a potential rise in the TAO price is the constant increase in volume. The trading volume has been ramping up since early April, and there was a considerable spike to mid-April.
The upward price action of Bittensor suggested that the token is poised for further gains. Historically, significant price movements for $TAO have often preceded such trends, reinforcing its bullish outlook.
Double Bottom Pattern and Increasing Open Interest
The formation of a double bottom pattern further supports market sentiment for TAO price. This pattern typically emerges in the lower $220 range, signaling a shift in market direction. It often marks the transition from a downtrend to an uptrend, indicating bullish momentum ahead.
After forming this pattern, Bittensor price may increase, increasing the momentum’s potential and confirming the bull trend. Market analyst DaanCrypto noted that $TAO is trading in a price region resembling last year’s bottoming structure.
This similarity strengthened optimism for a bullish outlook in the near term. A breakout above the $360 resistance trendline for TAO price could pave the way for upward momentum.
This potential move might drive Bittensor price to $400 or beyond, signaling strong bullish sentiment. The green zone around $360 is a key resistance area to monitor for future price action.
The open interest (OI) for $TAO contracts has also increased. As of the latest data, the total OI stood at $78.7 Million, with a 28.87% increase in the past 24 hours.
The surge in open interest indicated growing trader participation. It also suggested that the market is preparing for increased volatility.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.