Nov 30, 2024
6thTrade
Bittensor (TAO) has recently exhibited strong bullish momentum, with its price breaking above a descending resistance trendline on the daily chart. At the time of writing, TAO was priced at $623.78, reflecting a 9.80% increase in the last 24 hours. Trading volume also surged by 40.24%, reaching $470.79M, signaling increased market activity.
Current Performance:
Price Range: TAO's daily trading range lies between $551.98 and $638.58, indicating heightened volatility.
Proximity to ATH: TAO remains 17% below its all-time high (ATH) of $767.68. Renewed momentum raises questions about the altcoin’s ability to reclaim its ATH and potentially push higher.
AI Tokens Lead the Altcoin Rally:
The broader altcoin market has seen a notable rally, with market capitalization climbing by 7.9%. This surge comes as Bitcoin's dominance dropped to 57.0% due to stagnant price action. AI-focused tokens, such as TAO, have been at the forefront, with Bittensor gaining prominence after a 20% spike.
TAO's recent integration with the Ethereum Virtual Machine (EVM) has been a key driver of its gains. This compatibility enhances scalability, speed, and functionality, positioning Bittensor for greater adoption.
Technical Analysis:
Breakout Confirmation:
The daily chart highlights a breakout above the descending trendline resistance.
Parabolic SAR: Indicators show dots below the price candles, confirming the bullish bias.
Trend Strength & Volatility:
ADX (16.94): While the trend remains relatively weak, the breakout indicates strengthening momentum.
Standard Deviation (39.5): Increased volatility aligns with the breakout, supporting further bullish activity.
Support & Resistance Levels:
Key support lies at $450, the previous resistance level.
Next resistance target is $1000, marking a potential 60.17% upside from current levels.
Tokenomics & Emission Schedule:
TAO’s token release schedule, as visualized by DeFiLlama, reflects a phased distribution strategy designed for long-term sustainability. Significant emissions are expected between 2025 and 2027, coinciding with milestones aimed at ecosystem development. This gradual supply expansion minimizes immediate inflation and supports the network’s scaling objectives.
Market Sentiment:
Long/Short Ratio: A rise above 1.10 indicates growing bullish sentiment, with buyers dominating the market. This buy-side pressure has been increasing since November 27, aligning with TAO’s upward price trajectory.
Conclusion:
TAO’s breakout above key resistance, coupled with supportive technical indicators and market sentiment, suggests the potential for a sustained rally. If the bullish momentum continues, TAO could target the psychological $1000 level. However, failure to hold support at $450 could invalidate this setup and lead to a retest of lower levels. With EVM integration and controlled token emissions, TAO remains positioned for long-term growth, making it an altcoin to watch closely.