TAO’s recent price surge has caught the attention of analysts and traders alike, with the cryptocurrency showing strong bullish momentum. After breaking out of key patterns, TAO has seen a significant uptick in price, climbing 18% over the past week and a whopping 120% from its monthly low. Its market cap has also surged to over $4.32 billion, a substantial increase from just $1.95 billion at the beginning of April.
The surge in TAO’s price can be attributed to a sharp increase in futures open interest, which hit a 3-month high of $258 million on April 25. This surge in open interest, along with a rise in trading volume to over $208 million, indicates a growing bullish sentiment among traders. Funding rates have also turned positive, with more traders betting on the price going up rather than down.
Grayscale’s spotlight on TAO’s Bittensor Trust in a recent post has further fueled the bullish sentiment surrounding the cryptocurrency. As one of the leading names in crypto asset management, Grayscale’s involvement adds institutional credibility to TAO.
The crypto community is also bullish on TAO, with 83% of traders expecting short-term gains. Social sentiment surrounding TAO has remained positive for 12 consecutive days, and the cryptocurrency is trending on Google as more investors and traders take notice of its potential.
From a technical analysis standpoint, TAO has broken out of a multi-month falling wedge pattern on the 1-day USDT chart, signaling a potential continuation of an upward trend. The cryptocurrency is currently moving within an ascending channel and approaching key resistance near the $400 level. A golden cross has also formed on the daily chart, with the 20-day EMA crossing above the 50-day EMA, further reinforcing the bullish outlook.
Analysts are optimistic about TAO’s future price potential, with some eyeing a retest of the $485 resistance level, nearly 30% higher than its current price. Analyst Quinten believes that TAO’s recent breakout above $360 is significant and could pave the way for further gains in the coming weeks.
It is important to note that this article does not constitute investment advice and is for educational purposes only. As TAO continues its bullish run, traders and investors should conduct their own research and analysis before making any investment decisions.