TAO skyrockets 300%! Can this bullish momentum sustain, or is a correction looming?
- Bittensor surged 300% as subnets boosted growth; traders eyed key support at $300 for stability. TAO showed bullish momentum with net outflows and key resistance at $600, signaling potential further gains.
Bittensor [TAO] has seen growth, with a 300% price increase that has captured the attention of both traders and investors.
As of press time, Bittensor’s price was $601.10, with a 24-hour trading volume of $216.9 million.
Although the price has dropped by 4.07% in the last 24 hours, it has risen by 9.34% over the past week, reflecting sustained market interest.
With a circulating supply of 7.4 million TAO tokens, Bittensor’s market capitalization stood at $4.43 billion at press time.
One major reason behind TAO’s recent surge is the rapid expansion of subnets on the network.
Introduced just a year ago, subnets have become crucial to Bittensor’s development, with over 50 active subnets on mainnet and more expected to launch soon.
These subnets have enhanced the network’s capacity, attracting developers and users alike, boosting TAO’s overall market performance.
Price breakout and key support levels
TAO recently broke out of a descending channel, which has been a key catalyst for its bullish trend.
As noted by Roman, a crypto analyst, there has been some bearish divergence between TAO’s price and RSI, signaling potential correction ahead.
Despite this, Roman also mentioned,
“Don’t be afraid of some correction, $TAO is up 300%.”
Source: X
Key support zones can be identified around the $300 level, which previously acted as both resistance and support during the token’s rally. This level could serve as a base if a correction occurs, helping stabilize TAO’s price.
On the upside, resistance hovers between $580 and $600. A sustained break above these levels could trigger a new leg higher for TAO, especially if broader market conditions remain favorable.
TAO — Bitcoin correlation
TAO’s price action has shown some correlation with Bitcoin [BTC], which could play a role in determining the next moves for TAO.
If Bitcoin sees a correction, Bittensor could experience more volatility, as noted by Roman, who also expects Bitcoin to face short-term downward pressure.
However, a strong recovery in Bitcoin, especially a push above the $65,000 mark, could drive bullish sentiment across the market, benefiting altcoins like TAO.
Investors are advised to keep an eye on Bitcoin’s performance as a key indicator for broader market trends.
Technical indicators show mixed signals
While Bittensor’s bullish trend remains intact, technical indicators show potential for consolidation. The Awesome Oscillator (AO) remains positive, though the shrinking green bars suggest weakening bullish momentum.
At the time of this writing, the Relative Strength Index (RSI) sat at 64.65, keeping TAO in bullish territory but nearing overbought levels.
Source: TradingView
The Aroon Up is high at 85.71%, signalling strong upward momentum, while the Aroon Down at 57.14% suggests some bearish pressure may be building.
These mixed signals indicate that while the overall trend is still positive, TAO could see a short-term pullback before resuming its upward movement.
Traders may need to monitor these indicators closely for signs of any potential trend reversal.
Net outflows indicate positive sentiment
On-chain data shows that on the 9th of October, TAO experienced a net outflow of -$725.36K, indicating that more tokens are leaving exchanges than entering.
This outflow suggests that holders are moving TAO tokens into personal wallets, potentially signaling a reduction in selling pressure.
Source: Coinglass
Despite this outflow, TAO’s price remains strong, reflecting continued market confidence in the token’s future performance.
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