23 Aug 2024 Marsha Tusk
Bittensor (TAO)’s Market Cap Increased By 10% In A Day, Showcasing Strong Fundamentals
According to a Twitter-based researcher, Bittensor (TAO) has a lot of untapped potential and has been a greatly underappreciated asset. The Greyscale Bittenor Trust release this month would simplify trading and investing considerably.
The analyst believes that the upcoming months will see a massive boom in the AI market and that $5000 will still be cheap given its far higher potential. In the meantime, the researcher posted one of his sketches showing the asset's potential nearest goals in extremely bullish and optimistic conditions.
The teams at Bittensor are excellent, and the projects they are working on are incredible. They have created items that are already available for many people to try, such as Corcel, Tradewithdale, and Bettensor.
The market capitalization of Bittensor (TAO) has surged by more than 10% intraday to $2.496 billion, while the spot volume inflow has increased to $57.298 million. TAO's quick ascent on August 5th placed it as the 33rd-largest cryptocurrency by market capitalization.
Source: CoinMarketCap
Although there was a lot of confidence in TAO, the liquidity ratio was low at 2.68%, which may raise some red flags. Furthermore, out of the maximum supply of $21 million TAOs, precisely 7.249 million TAOs, or 34.52% of the supply, have floated in the market thus far.
The long-short ratio, which stood at 1.0325 according to the derivatives, indicated that bulls had the upper hand over bears. The shorts liquidated for $55.31K in 24 hours, while the longs only made up $7.37K. Demand is increasing as seen by the recent spike in the price of TAO's short-term trend, which saw a 10.88% increase in volume and a 20.91% increase in OI.
Investors have received exceptional gains from Bittensor (TAO), which surged over 1600% and peaked at $755.02 in October 2023 and March 2024, respectively. But TAO ran into opposition in a supply zone after reaching this all-time high, limiting additional gains below $755.02.
This resulted in a considerable period of profit-taking, which caused the market to retrace more than 70% of its previous gains. After failing to break over $755.01, the market began to decline, making lower lows before, on July 5, the price returned to the initial demand level.
After that, there was a brief spike in price that took it to the top of a falling wedge pattern. In spite of this, resistance was encountered around $358.01, resulting in even another decline. After a liquidity-driven spike on August 5th, TAO traded close to the upper edge of the collapsing wedge over the next fifteen days.
At least for now, the 50-day and 200-day moving averages are providing dynamic resistance to the price. A breach of these resistance levels can indicate the start of a possible breakout. There has been a bullish crossover of the MACD indicator, and the RSI is currently at 54.27.
In conclusion, if the falling wedge pattern holds true, there may be room for upward movement in the near future. Support levels are $260 and $240, and resistance levels are $488 and $358, respectively.
