- Bittensor is eyeing a $1,000 target with its bullish Cup formation
- Positive spot inflows signaled strong momentum ahead for TAO
As a seasoned crypto investor who has weathered multiple market cycles, I must admit that the recent surge of TAO (Bittensor) has caught my attention. The bullish Cup formation and the positive spot inflows are undeniably strong indicators of an asset’s momentum, and in this case, they paint a promising picture for TAO.
Over the last five weeks, Bittensor [TAO] has registered significant upward movement. In fact, at the time of writing, the altcoin was just 5.1% below its 11 April 2024 peak of $767.68. In the last 24 hours, the price surged by 1.67% to trade at $725.50.
Furthermore, the trading volume for this digital currency alternative saw a rise of 17.42%, peaking at approximately $641.62 million in market activity.
This increase is primarily due to a rise in trading actions and an uptick in Open Interest, which suggests a building market dynamism.
TAO heating up with the cup and handle pattern
Currently on the weekly charts, TAO is shaping up to resemble a well-known “cup and handle” pattern, suggesting a possible surge. It’s important to mention that over the past week, this asset has experienced a rise of approximately 16.10%, with noticeable fluctuations ranging from $661.02 to $741.29.
A significant area of potential resistance is situated between $720 and $780. Previous attempts to push beyond this range have been met with rejection, implying that this region holds great importance in predicting the altcoin’s future direction.
During the period spanning March to October 2024, a cup-like structure has been developed, which suggests an accumulation phase. Following this, from November 2024 to December, a handle pattern emerges, indicating a consolidation period. If TAO manages to surpass $780, it may potentially reach targets ranging between $1,000 and $2,000, given the cup’s depth.
The key measures such as Stochastic RSI and Awesome Oscillator point towards a favorable or bullish market trend, while the Supertrend indicator continues to show positivity as well.
If TAO doesn’t manage to break through its resistance, there could be a pullback towards the range of $600 to $550. This situation might present an opportunity for re-entry at reduced prices.
Positive funding rates fuel a $700 breakout
The trend of TAO’s funding rate has often mirrored its price fluctuations. At first, it remained unbiased, but by September, it dipped into a negative range, indicating a bearish attitude among traders.
As TAO started regaining strength from late September through October, the funding rate mostly turned positive, mirroring the price growth and an increase in long-held positions.
In November, I observed a surge in the funding rate coinciding with TAO’s significant rise, noticeably as the price approached the $700 threshold.
The persistent favorable funding rate fueled optimism among traders, as they grew more certain that the crypto would rise in value. By December, TAO’s price even exceeded $700, a surge that was additionally supported by moderate positive funding rates – another indication of prolonged bullish attitudes.
Positive spot inflows could propel TAO’s $800 rally
In the past few months, spot inflows have played a key role in boosting TAO’s upward trend. However, during the period from February to June 2024, substantial outflows led to decreases in price, resulting from intense selling activity.
Initially, spot inflows remained modest, but by October they began to significantly increase, reaching over $12 million in late November, signaling a strong accumulation period. This surge of spot capital has offered the required backing for TAO’s price to escalate from $400 to above $700.
Read Bittensor’s [TAO] Price Prediction 2024–2025
Consistent inflows more than outflows during November and December set the stage for continued expansion.
Given the ongoing favorable influxes and the current market’s upward trend, it seems plausible that TAO could attempt to surpass its $800 barrier and attain unprecedented highs.
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2024-12-07 13:12