Could a $12 Million Influx Trigger a Bullish Turnaround for Bittensor Price?
Bittensor price has experienced a strong rebound from its monthly lows, surging by almost 40% over the course of the week. This recent upswing suggests that the cryptocurrency may be bottoming out and breaking out of a correction phase, which it has been in since reaching an all-time high in April 2024.
Although the 40% intraweek gain is impressive, the long-term trend still requires a bullish reversal above the $360 level. Currently, Bittensor is being traded around $305, registering a 3.2% increase intraday.
Additionally, on-chain metrics have shown significant changes in recent sessions, further indicating a potential continuation in price movement. TAO, an open-source decentralized blockchain protocol, currently holds a market capitalization of $2.19 billion and ranks 34th in the world of cryptocurrencies.
Open Interest contracts have also experienced notable growth, rising by 40% over the week, according to analysts. This surge in contracts demonstrates increased investor confidence. In just one week, Open Interest data has increased from $18 million to $32 million, representing a $12 million influx. Such a significant jump in inflow highlights improved investor confidence, while the volume-to-market cap ratio of 2.54% suggests relatively low volatility.
Furthermore, the transaction volume has increased by 2.52% intraday to $58.78 million, indicating a rise in demand. Out of a total supply of 21 million TAOs, approximately 34.3% (7.2 million tokens) are currently in circulation.
Considering the daily chart, a strong recovery from the monthly lows is evident, forming a double bottom pattern. Should the price manage to surpass the neckline of this pattern, located at $359, a bullish breakout would be confirmed. However, as long as TAO remains below the neckline of $359, it may continue in its correction phase. From a technical standpoint, TAO has already surpassed the 20-day and 50-day Exponential Moving Averages (EMAs), implying a bullish short-term outlook. However, the bulls must overcome the 200-day EMA in order to prompt a reversal.
Presently, the Relative Strength Index (RSI) line sits at 50.4 points, while the 14-day Simple Moving Average (SMA) line is at 44.60 points. Moreover, a bullish crossover between both lines has been observed, indicating a potential recovery in the cryptocurrency.
In conclusion, Bittensor price has surged by nearly 40% over the week, suggesting a possible breakout from its correction phase. However, a confirmed bullish reversal would require a price surpassing the $360 level. As of now, Bittensor is trading at around $305, experiencing a 3.2% intraday increase. Furthermore, Open Interest contracts have risen 40% to $32 million, indicating growing investor confidence. The daily chart reveals a double bottom pattern, and while TAO has surpassed the 20 and 50-day EMAs, conquering the 200-day EMA is necessary for a reversal. The RSI and SMA lines also indicate a potential recovery trend.