Bittensor [TAO] is up more than 13% in the past 24 hours at press time, breaking above a key structural level. The altcoin is surging while the broader crypto market gained about 5% in capitalization.
In the top 100 cryptos by market cap, AI tokens led in daily gains, but TAO has yet to move significantly. In fact, its rally was anticipated to be in the coming weeks, while some of the altcoins were starting to rally.
TAO price prediction – Is the $380 target within reach?
As per a crypto analyst, Bittensor is yet to move from its bottom, while a few altcoins were runners, suggesting that TAO was likely to see a strong breakout.
This conclusion is due to the fact TAO had been in a long accumulation range against Bitcoin [BTC]. The analyst expects a breakout in the coming weeks with a target range between $360 and $380.
The MACD had turned green after a bullish crossover on the daily chart, supporting the analyst’s view. The target was trading over 35% away from a price level of about $255.
In line with this, TAO went to break the neckline of an inverted head-and-shoulders at $270, indicating that TAO is trading toward the target.
Buying activity is evident as the Aggregated Funding Rate turned green with a reading of 0.0066%. This shows bulls are paying bears a premium to keep their orders open.
However, the RSI Divergence has a bearish signal already printed on the hourly chart. The indicator’s reading was at 70 as of writing, indicating overbought conditions. This hints at a short-term price correction after a breakout.
Why TAO’s breakout is likely to hold
Even with the risk of a short-term correction, TAO’s breakout may hold. Aside from the analyst backing, TAO was rallying due to a beta-driven momentum in the ongoing altcoin rotation.
Additionally, the Cumulative Long Liquidation Leverage was at $19 million, while shorts totaled $2 million. This indicated that traders bought more leveraged positions below the current price than they sold around or above $280.
The largest long order was at $235, valued at $1.49 million, while the shorts were at $320, valued at $1 million. The $320 level could be a challenge as the price trades toward $380.
Therefore, TAO’s breakout remains intact unless the price dips below $276, which could lead to cascading long liquidations, amplifying downside risk.
Final Summary
- Bittensor rallied 13% in the past 24 hours as TAO’s price action breaks above a key level at $276.
- TAO’s total liquidation leverage indicated $19 million in longs against $2 million in shorts, showing a bullish bias.