BitTensor [TAO], a prominent artificial intelligence (AI) cryptocurrency, is gaining significant momentum in the digital asset market as the evolution of web3 continues to unfold on blockchain technology.
Over the past 24 hours, TAO has seen a substantial surge of over 12%, establishing itself as the top-performing coin among the top 50 cryptocurrencies by market capitalization at the current moment, as reported by CoinMarketCap.
Given the prevailing market conditions, TAO is strategically positioned to potentially surpass Fetch.AI (FET) as the leading AI-focused coin.
Recent impressive earnings announcements from major corporations such as Nvidia (NVDA) have played a pivotal role in influencing market sentiments and fostering a bullish outlook towards AI-centric cryptocurrencies.
This has particularly ignited optimism for AI coins, considering Nvidia’s prominent position in the AI sector.
TAO Price Reaches a Peak of Approximately $440
In the most recent 24-hour period, TAO’s price spiked to $440 on Kucoin Exchange before encountering immediate resistance, indicating robust selling pressure at that level.
This has effectively established a noteworthy resistance zone for the coin going forward. Typically, market wicks are perceived as gaps that tend to be filled eventually, implying that BitTensor may need to ascend further to bridge this gap.
Although the uncertainty remains regarding whether TAO/USDT will rally to close this gap, the price rejection suggests that sellers still maintain a certain level of control. However, TAO briefly surpassed the $356 mark, where liquidity is concentrated due to consistent price highs.
Moreover, the bullish closure of the candle on August 5th, represented by a hammer pattern with a long tail, indicates a growing buying pressure within the market.
Notably, the consolidation of TAO/USDT within a specific range, characterized by progressively higher lows, commonly serves as a bullish indicator. The current negative reading on the Chaikin Money Flow hints at a likely reversal that could propel TAO’s price upward.
Furthermore, the Relative Strength Index (RSI) on the 14-day moving average has recently transitioned into a bullish territory, providing additional support for the potential price surge in the foreseeable future.
Approaching All-Time High Open Interest for TAO
The cumulative open interest for BitTensor across various prominent exchanges is edging closer to its historical peak, currently standing at $68.88 million at a valuation of $322 at the time of reporting.
Leading the charts are Binance with $29M in TAO open interest, pursued by Bybit with $18.6M. Subsequently, Bitget and BingX follow suit with $13.19 million and $5.54 million, respectively.
Other exchanges such as Coinbase, Kraken, HTX, and CoinEx exhibit noteworthy albeit relatively lower levels of open interest for TAO.
This significant surge in open interest indicates a bullish sentiment for TAO, presenting a favorable opportunity to potentially accumulate TAO tokens at this stage.
Analysis of Liquidation Heatmap
Lastly, a scrutiny of the liquidation heatmap reveals several critical liquidation thresholds that could hint at forthcoming price movements.
A substantial cluster of $482.17K in liquidation leverage is concentrated above the $366 price level, likely held by traders taking a bearish stance on BitTensor following its recent rejection.
Below the $280 mark, there’s an accumulation of $1.11 million in liquidation leverage, with an additional $1.92M resting below $275.
If TAO’s price manages to capture the liquidity present above its current level, it could trigger a wave of bullish sentiment, propelling TAO/USDT to higher price levels.