This is why Bittensor (TAO) price can be set for more profit
TAO, the decentralized network Bittensor utility token, is one of the top earners in the market today. In the year The altcoin, which was trading as low as $181.79 on August 5, had risen to $316.93 at press time.
This rally represents a 15.61% 24-hour increase. However, a few other interesting things are happening on the network, where this analysis on the chain will be explained.
The hidden forces behind the growth of interest
On August 7, BeinCrypto reported that leading crypto asset manager Greyscale has added Bittensor to its new investment trust. The development comes just weeks after the firm created a decentralized AI trust that includes other AI-focused brands.
Following the announcement, traders in the derivatives market increased their exposure to TAO. According to Santiment, open interest related to the cryptocurrency was around $17 million. As of this writing, that price is about to double.
Open interest, often referred to as OI, measures the value of outstanding contracts in the market. An increase in OI indicates that traders are adding more liquidity to contracts, while a decrease indicates a decrease in net positions.
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When analyzed critically, Open Interest (OI) may indicate that the trend is unlikely to continue. If OI and price both move in the same direction, the trend is likely to continue. However, if they move in opposite directions, a trend reversal may occur.
As the TAO price and OI both grow, the token may reach a higher price in a short period of time. Additionally, data on the chain showed that weighted sentiment peaked on August 7, reflecting overwhelmingly positive sentiment about Bittensor.
Although this sentiment has decreased slightly, it remains positive, which suggests that the broader market is still optimistic. If this sentiment remains in positive territory in the coming days, demand for TAO could grow, which could push its price higher.
TAO Price Prediction: Can it break the $360 barrier?
Before TAO's recent rally, the daily chart shows a circular top forming. Often seen as a bearish sign, the inverted bowl indicates increased selling pressure. However, the support level at $217.87 prevented a breakdown.
Meanwhile, the Relative Strength Index (RSI) is at 54.31, suggesting strong bullish momentum for the cryptocurrency. Traditionally, RSI is a technical indicator that uses momentum and price changes to determine momentum.
When increasing, momentum buying is dominant, while decreasing indicates that sellers are in control. For TAO, a rise in the RSI level could reinforce the trend, as could open interest.
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Based on the analysis, TAO can target the upside resistance at $323.18. If it breaks at this level, the price could reach $361.51. But if the bears beat the bulls, the price of the cryptocurrency could drop to $272.58.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
