Bittensor (TAO) has shown impressive performance in the past 24 hours, surpassing Bitcoin (BTC) and the wider cryptocurrency market by registering a notable 13% gain. Notably, TAO has consistently been among the top performers over the last month, with the altcoin witnessing a remarkable appreciation of over 130%.
As indicated by Artemis, the Artificial Intelligence (AI) sector within the crypto market has emerged as the leader in terms of gains over the past month, boasting a weighted average increase of 37%.
Within just a month, the total market capitalization of AI & Big Data cryptocurrencies has surged from $26 billion to $35 billion, as reported by CoinMarketCap. This significant growth has directly contributed to the surge in value of TAO, the second-largest AI cryptocurrency with a market cap of $4 billion.
Historic Surge in Open Interest
Coinglass data reveals that Bittensor’s Open Interest has spiked to an all-time high of $189 million. This metric has experienced a substantial uptrend, surging by more than threefold from $50 million recorded on September 5th.
An increase in Open Interest signifies a growing number of traders initiating and holding positions in TAO.
When the Open Interest rises alongside the price, it indicates a significant influx of capital into TAO, affirming a sustainable upward trajectory and the potential for further appreciation in the token’s value.
Furthermore, apart from Open Interest, derivative data related to TAO has indicated a positive market sentiment towards the token, with the long/short ratio currently standing at 1, reflecting a well-balanced market sentiment at the time of reporting.
Moreover, within a 24-hour period, over $800,000 worth of short positions were liquidated, suggesting a market environment that has not been favoring short traders.
Technical Analysis of TAO
Presently, TAO is trading at $590. The token has exhibited a bullish V-shaped recovery pattern on the four-hour chart, indicating a continuation of bullish momentum.
At its current price, TAO appears to be hovering around a critical resistance level. The presence of green volume bars in the histogram signals a potential break above this resistance level, supported by the strong buying momentum.
Should TAO successfully breach this resistance level, the next target price could be $618. High buying volume, evidenced by a positive Chaikin Money Flow (CMF) at 0.21, enhances the probability of a breakout.
Furthermore, the Moving Average Convergence Divergence (MACD) line has crossed above the Signal line, underlining the robust bullish momentum. Additionally, the presence of green MACD histogram bars indicates the potential dominance of bulls in the market.
The positive sentiment surrounding TAO is further emphasized by its continual positive funding rates since the end of September, indicating a willingness among long traders to pay a fee to maintain their positions against short traders.