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Following the recent Fed Rate cut, Bitcoin as well as several altcoins are making an upward trajectory amid improved sentiments. Bitcoin is approaching the major $64K mark. It has ignited a fresh wave of speculation in the market.
In the list of gainers, Bittensor (TAO) seems to be one step ahead of all. The crypto has broken out of a long three-month consolidation phase and rewarded investors with impressive gains. TAO price is on a 5-day gaining streak and has been a standout performer this week.
Along with an 18% rise in the last couple of sessions, Bittensor price has surged over 45% in the last five sessions. Let’s examine the factors contributing to the price hike and anticipate further possibilities for the asset price.
Derivatives Traders Lead the Charge
Bittensor price had been in a consolidation phase since June which the price has recently broken out of. The bulls dominated near the $213 level whereas the bears had established themselves near the $360 level, acting as a supply zone.
Derivatives traders have positioned themselves to take advantage of the price rise. As per Santiment, the Open Interest contracts have surged from $288 Million to $416 Million last week, reflecting a 44% jump.
A strong surge in the open interest data indicates that the derivatives traders and speculators are aggressively betting on the long side.
Transaction volume has surged from $59 Million a day to $193 Million a day indicating a heightened demand. However, the volume-to-market cap ratio of 6.2% suggests mild volatility.
Can Bittensor Price Claim $500 This Week?
At the time of writing, Bittensor price was exchanging hands at close to $423.17 recording an impressive intraday rise of 13.1%. Along with the intraday surge, TAO has validated a breakout of a long three-month consolidation phase.
Earlier, the TAO price suffered rejection from higher levels in mid-May and dropped. The price completed a 4-month cycle in the correction and consolidation phase which has ended.
Bulls are leading the trend right now, they could keep fueling the price higher in the short term. On the higher side, a straight gain till the next psychological level of $500 is anticipated by analysts.
The resistance from $360 has been flipped and may offer support to TAO price if a pullback is observed on the charts. TAO has also surpassed the key 20 and 50-day exponential moving averages, turning them into dynamic support levels.
Moreover, both the MACD line as well as the signal line were placed above the zero line, indicating a positive outlook. A golden crossover along with divergence between both lines indicates further advancement in the TAO price.