Could Bittensor (TAO) Go Up 2x? Price Analysis & Future Outlook

Bittensor (TAO) saw buyers produce a bullish spell on the daily chart from July 7th, 2024, reflecting over 65% growth in the last two weeks. Price sustained at a crucial demand zone before rising.

As of writing, the struggle to propel higher continued with a slight halt taken in the course, as the 200-day EMA band acted as a hurdle that needed to be cleared for extraordinary gains to pop out.

Bittensor (TAO) Statistics In Detail:

According to CoinMarketCap, TAO spot trading volume stands at $60.709 Million. The market cap is $2.323 Billion. Meanwhile, the liquidity is weak at (2.61%), which could indicate market stability. Investors should be cautious before stepping in (DYOR).

However, despite the weak liquidity, in terms of market cap, TAO ranked 44th crypto among the top 50 cryptocurrenciess on CoinMarketCap.

Bittensor has given great returns to its investors, which exceeds over 1500%, peaking at $755 (ATH) from October 2023 to March 2024. However, it was followed by profit booking, which loosened around 70% of its growth.

Despite the fall, TAO/USDT: MEXC displayed that by mid-May 2023, it was at an all-time low level. The price is nearly 900% higher.

According to tokenomics, 7.092 Million TAO (33.78%) of the supply is in circulation out of the total supply of 21.0 Million TAO. Meanwhile, the FDV, as of writing, stands at $6.875 Billion.

TAO Derivatives Data

As per TAO derivatives data analysis, 3.43% more contracts were opened ($47.70 Million) OIs in total.

TAO Futures Open Interest (USD) | Source: Coinglass

Its derivative volume has also surged, amounting to a total of $98.80 Million. Liquidation data was also good. It favoured mostly bulls, as more shorts were liquidated than longs. Intraday, the interruption in price witnessed at the 200-day EMA, which could be a sign of profit booking.

TAO Total Liquidations Chart | Source: Coinglass

Meanwhile, the shorts in 24 hours amounted to less than longs at $42.5K, whereas the long liquidation amount was higher at $61.06K.

Bittensor (TAO) Price Structure Overview

From January 8th, 2024, to March 7th, 2024, TAO rose over 290%, where the price accelerated massively from $193 to $755.86. However, the price encountered a supply zone and failed to harness further gains on the daily chart.

After failing to surpass $756, the price entered a streak of lower lows, going back to the initial demand zone in the next 4 months by July 5th. However, the price once again surged with the broader market bullish sentiment and rose over 65% in the past two weeks, and nearly 38% growth in the past 1 week.

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As of writing, the price managed to break the upper border of the channel. It seems like a bullish pattern, precisely the falling wedge’s breakout. Therefore, if the breakout continues, then the upper targets lie around $370, and $430, respectively.

On the contrary, if the price declines and trades back into the pattern, then this pattern would lose its significance, and a bearish perspective or sideways perspective could prevail. But, if the price slips to $260, then the first support would be the demand zone at $200, and the second support would be at $135.

Indicators are bullish: MACD showed a bullish cross with a growing histogram at 13.75, and RSI jumped from 14-SMA towards overbought, which flashed at 63.12.

TAO has surged over 65% in the past two weeks but faced resistance at the 200-day EMA. Despite weak liquidity, TAO remains in the top 50 crypto list by market cap. Investors should be cautious due to the volatile market.

The price action suggests a bullish breakout, with potential targets of $370 and $430. However, a break below the pattern could lead to a decline towards $200 or even $135.

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