Impact of Major Holders Holding 77% of Long Positions on TAO
While Bitcoin has been rallying to reach $68k recently, coins related to artificial intelligence (AI) have been facing a downward trend.
Just a fortnight ago, AI-themed coins, especially TAO by Bittensor, were leading the crypto market with substantial gains. However, things have taken a different turn in the past week.
Currently, TAO has witnessed a significant drop in its value. Presently, Bittensor is being traded at $578, reflecting a 6.80% decrease in the past day and a 1.11% dip over the week.
Previously, TAO was on an upward trajectory, recording an impressive 98.68% surge on a monthly basis. Even though there has been a recent decline, the increased dominance of major holders indicates a positive outlook for the altcoin.
Significance of TAO Whales in the Market
A recent report by Hyblock Capital highlights the presence of TAO whales on the Crypto Rankmap.
According to the findings, major holders have exerted significant control over the market compared to individual retail traders. This data indicates that whales are more inclined towards long positions than retail traders.
Over the last 90 days, the top traders have dominated 77% of the long positions in the market. This portrays that retail traders only accounted for 23% of the long positions.
Specifically for TAO, the data reveals that whales are notably more optimistic compared to retail traders. There is a strong indication that whales are confident in the altcoin’s potential for price appreciation.
Implications for TAO
As highlighted by Hyblock, the market sentiment is overwhelmingly bullish, with a majority of top traders foreseeing an imminent price surge.
An analysis by CryptoCrypto suggests that TAO is currently enjoying a robust upward momentum, with bulls maintaining control.
For instance, the Advance Decline Ratio (ADR) stands at 2.84 presently. This statistic indicates a broad market strength, with buyers dominating the trading scene.
Thus, for every decline observed, there are 2.8 advancing assets, signifying that TAO is witnessing more gains than losses.
Besides, TAO’s positive funding rate from exchanges has been consistent over the past week. This data showcases that a larger number of traders are opting for long positions over short ones, even in times of market downturns.
This preference for long positions is further evidenced by the continuous positivity of the Open Interest (OI) weighted funding rate. The data indicates that traders are anticipating a rise in prices in the foreseeable future.
In essence, Bittensor is experiencing a favorable market environment, with a notable inclination towards long positions among traders. Both major holders and individual investors are showing strong confidence in the market. If the current positive market sentiment persists, TAO is likely to make a strong challenge towards surpassing the next significant resistance level at $620 in the short run.