ambcrypto.com
Bittensor [$TAO] is up more than 13% in the past 24 hours at press time, breaking above a key structural level. The altcoin is surging while the broader crypto market gained about 5% in capitalization.
In the top 100 cryptos by market cap, AI tokens led in daily gains, but $TAO has yet to move significantly. In fact, its rally was anticipated to be in the coming weeks, while some of the altcoins were starting to rally.
$TAO price prediction – Is the $380 target within reach?
As per a crypto analyst, Bittensor is yet to move from its bottom, while a few altcoins were runners, suggesting that $TAO was likely to see a strong breakout.
This conclusion is due to the fact $TAO had been in a long accumulation range against Bitcoin [BTC]. The analyst expects a breakout in the coming weeks with a target range between $360 and $380.
The MACD had turned green after a bullish crossover on the daily chart, supporting the analyst’s view. The target was trading over 35% away from a price level of about $255.
In line with this, $TAO went to break the neckline of an inverted head-and-shoulders at $270, indicating that $TAO is trading toward the target.
Buying activity is evident as the Aggregated Funding Rate turned green with a reading of 0.0066%. This shows bulls are paying bears a premium to keep their orders open.
However, the RSI Divergence has a bearish signal already printed on the hourly chart. The indicator’s reading was at 70 as of writing, indicating overbought conditions. This hints at a short-term price correction after a breakout.
Why $TAO’s breakout is likely to hold
Even with the risk of a short-term correction, $TAO’s breakout may hold. Aside from the analyst backing, $TAO was rallying due to a beta-driven momentum in the ongoing altcoin rotation.
Additionally, the Cumulative Long Liquidation Leverage was at $19 million, while shorts totaled $2 million. This indicated that traders bought more leveraged positions below the current price than they sold around or above $280.
The largest long order was at $235, valued at $1.49 million, while the shorts were at $320, valued at $1 million. The $320 level could be a challenge as the price trades toward $380.
Therefore, $TAO’s breakout remains intact unless the price dips below $276, which could lead to cascading long liquidations, amplifying downside risk.
Final Summary
- Bittensor rallied 13% in the past 24 hours as $TAO’s price action breaks above a key level at $276.
- $TAO’s total liquidation leverage indicated $19 million in longs against $2 million in shorts, showing a bullish bias.