- Bittensor’s (TAO) Open Interest hit an all-time high, with positive sentiment climbing too
- In the last 30 days, TAO has gained by more than 130%
Bittensor (TAO) has outperformed Bitcoin (BTC) and the broader cryptocurrency market with 13% gains in the last 24 hours. In fact, TAO has been a top performer over the last 30 days too, with the altcoin appreciating by over 130%.
According to Artemis, the Artificial Intelligence (AI) crypto sector has been the market leader over the past month, with a 37% weighted average gain.
(Source: X)
In just one month, the total market capitalization for AI & Big Data cryptos has risen from $26 billion to $35 billion, as per CoinMarketCap. This growth has stirred gains for TAO, which is the second-largest AI crypto with a $4 billion market cap.
Open Interest hits an all-time high
According to Coinglass, Bittensor’s Open Interest surged to an all-time high of $189 million. This metric has risen by more than 3 times from $50 million on 5 September.
(Source: Coinglass)
A hike in Open Interest indicates that more traders are opening and maintaining their positions on TAO.
When Open Interest climbs alongside the price, it shows that more money is flowing into TAO. This confirms a sustained upward trend and the likelihood that the token’s gains could extend themselves.
Besides Open Interest, derivatives data on TAO suggested positive sentiment towards the token. The long/short ratio stood at 1 at press time, showing balanced market sentiment.
Moreover, over $800,000 in short positions were liquidated in 24 hours, implying that the market has not been favoring short traders.
(Source: Coinglass)
TAO’s technical analysis
TAO was trading at $590, at press time. The token formed a bullish V-shaped recovery on the four-hour chart – A sign that the bullish momentum could continue.
At its press time price, TAO seemed to be trading at a crucial resistance level. The green volume histogram bars showed that the token could break past this resistance level as the buying momentum is strong.
(Source: Tradingview)
If TAO breaks past this resistance level, the next target price will be $618. At the time of writing, buying volume was high as the Chaikin Money Flow (CMF) was positive and at 0.21. This supported the likelihood of a breakout.
At the same time, the Moving Average Convergence Divergence (MACD) line flipped above the Signal line – A sign that the bullish momentum was strong. The green MACD histogram bars further suggested that bulls may be in control.
The positive sentiment around TAO is further evidenced by its funding rates, which have been positive since late September. This means that long traders are willing to pay a fee to short traders to maintain their positions.
(Source: Coinglass)
Credit: Source link