- TAO is approaching the critical resistance level at $685 after a surge in volume and technical strength.
- Market sentiment is supported by increased open interest, bullish MA crossover and low social dominance.
Bit tensor [TAO] has recently experienced a significant increase in 24-hour trading volume, to over $500 million, reflecting strong interest and market activity.
The spike in activity signals heightened interest as TAO’s trading price rises to $599.66, up 8.01% in the past 24 hours. Consequently, TAO’s market cap has reached $4.43 billion at the time of writing, further indicating renewed momentum as it approaches a key resistance level at $685.
With bullish sentiment emerging, TAO could be preparing for a major move.
Technical Analysis: Signs of a Bullish Breakout
TAO’s technical indicators point to a possible breakout. After leaving the strong support zone between USD 400 and USD 500, the price is approaching the critical resistance level at USD 685.
Crossing this point could pave the way to the next target of $1,252.6, providing significant potential profit. However, continued buying pressure is essential for this rally to sustain.
The Relative Strength Index (RSI) stood at 62.19, indicating that TAO is approaching overbought territory. This level could lead to some profit taking as buying pressure subsides. However, the upward movement of the RSI is still in line with a bullish outlook.
Furthermore, the recent moving average (MA) crossover between the 9-day and 21-day MAs strengthens the bullish case. Both averages are trending upward, showing continued momentum and strong buying interest.
Therefore, this MA crossover suggests that TAO’s rally may extend beyond a short-term recovery, indicating a possible continued uptrend.
Source: TradingView
Liquidation Data: A Bullish Imbalance
The latest liquidation data shows an interesting trend: long positions exceed $200 million, significantly outpacing short positions. This indicates that market sentiment is bullish.
However, this imbalance increases the risk of subsequent liquidations if TAO faces sudden downside pressure, which could increase losses and create volatility.
Source: Coinglass
Social dominance decreases during the rally
Interestingly, social dominance has decreased and currently stands at 0.059%. This suggests that TAO’s recent price increase is driven less by retail hype and more by larger investors, potentially lending stability to the uptrend.
Consequently, this lower social dominance could help reduce speculative volatility.
Source: Santiment
The increase in open interest indicates bullish sentiment
Open interest increased 12.58% to $251.12 million. This increase in open interest, coupled with rising trading volume, underlines the strong confidence and engagement of investors.
Therefore, this growth suggests that the market is expecting further upside, adding momentum to TAO’s current rally as it tests the $685 resistance level.
Source: Coinglass
Read Bittensor’s [TAO] Price forecast 2024–2025
TAO’s technical indicators, rising open interest and strong trading volume point to a likely breakout above $685. However, the RSI is approaching overbought territory and declining social dominance warrant caution.
While TAO could reach its ambitious target of $1,252.6, any loss of momentum or sudden selling pressure could disrupt its path upward.
