Bittensor's (TAO) Trajectory Points Toward $400: Technical Breakthrough and Optimistic Market Attitude
Crypto Market Soars, and TAO Joins the Party
Since mid-April, the crypto world's been having a wild ride, and top coins like BTC and ETH have stormed past their previous bearish values. One of the many cryptos in the spotlight is the TAO token, which saw a 17% surge to $385. Despite touching a low point of $359, it's currently hovering around $382. This dramatic move suggests investors are getting real bullish on TAO. From retail traders to big-name institutions, everyone's talking about TAO's recent momentum.
Volume Spikes as Trading Heat Ramps Up
One major clue behind the TAO price surge is the rise in daily trading volume. As of April 29, the Asian market opened, TAO's volume skyrocketed by 87%, reaching over $208 million. However, by the time you're reading this, it might have dipped to $180 million but still represents a 23% increase. This jump signals increased market engagement, which can often amplify price movements even further. TAO's currently trading at $382, and its market cap's at $3.33 billion, as the chart below shows. Adding fuel to the fire is the increase in open interest in futures, setting the stage for more TAO growth in the short term.
Chart 1- TAO/USDT Market Cap, published on CoinMarketCap, April 29, 2025.
Futures and Sentiment Suggest TAO's Bullish Streak
Open interest in TAO futures hit an all-time high of $258 million on April 25, up from $155 million just a month prior, according to Mark Jeffry. A price rally coupled with increased open interest is usually seen as a bullish sign. Moreover, funding rates have flipped positive, signaling that traders are paying to keep holding TAO long. Right now, the long/short ratio for TAO/USDT on Binance is 1.14, indicating that more traders think the TAO token price will keep climbing.
Grayscale's Spotlight Stokes TAO Breakout Hype
What kick-started renewed interest in TAO? A major player was Grayscale's recent spotlight on its Bittensor Trust in a tweet on April 28. Although the trust launched back in August 2024, this fresh attention from a leading crypto asset manager gives TAO some much-needed credibility. The buzz amplified across social media and trading platforms, pushing the TAO price surge beyond mere numbers and into the realm of renewed visibility. Grayscale's involvement matters, especially to institutional investors, and it's strengthened the case for a sustained TAO breakout in the days and weeks to come.
"$TAO is breaking the $360 resistance with strength. Potentially a test of the $360 level as support. But $485 is on the table now" - April 28, 2025
Technical Analysis Supports Further Price Increases
From a technical perspective, TAO looks solid. The token recently broke free from a multi-month falling wedge pattern, a sign that often precedes bullish moves. Following the breakout, TAO's been moving within an ascending channel, aiming for resistance near the $400 mark. If it manages to breach this barrier, TAO's momentum might carry it even higher. To top it off, a golden cross on the daily chart, where the 20-day EMA crossed above the 50-day EMA, a pattern historically associated with dramatic price increases, adds even more fuel to the fire.
Positive Sentiment Fuels hopes for TAO Growth
Trader sentiment is extra optimistic, with 83% of traders anticipating short-term gains. This sustained optimism, unusual for the volatile crypto market, is reflected in Google Trends, which shows that TAO's becoming a burning question on everyone's mind. Technical indicators like the Chaikin Money Flow (now at 0.13) confirm a surge in buying pressure. If the current trend persists, analysts say TAO could push the token to test the $485 resistance, a potential 30% gain from today's level.
[1] https://www.coingecko.com/en/coins/tao
[2] https://coinmarketcap.com/currencies/tao/
[3] https://twitter.com/GrayscaleInvest/status/1648694213171599360
[4] https://binance.com/en/futures/tao-usdt
[5] https://www.investopedia.com/terms/a/ai.asp
- Following strong surges in Bitcoin and Ethereum, the TAO token, currently trading at $382, has seen a notable 17% increase, reaching a market cap of $3.33 billion.
- The dramatic TAO price surge can be attributed to a spike in daily trading volume, with the Asian market seeing an 87% increase on April 29, reaching over $208 million.
- Open interest in TAO futures hit an all-time high of $258 million on April 25, a clear indicator of a bullish signal for the token's continued growth.
- The interest in TAO was renewed following Grayscale's recent spotlight on its Bittensor Trust, giving TAO credibility among institutional investors and leading to increased visibility for the token.
- From a technical perspective, TAO has broken free from a multi-month falling wedge pattern, signaling potential bullish moves and aiming for resistance near the $400 mark.
- Analysts predict that if the current trend persists, TAO could push the token to test the $485 resistance, representing a potential 30% gain from its current level, fueled by optimistic trader sentiment.
