While Bittensor’s price has faced significant selling pressure, TAO rebounds and records a performance of 70%. Let’s take a look at the future prospects of Crypto AI’s price.
After recording a drop of more than 70% as announced in the July 4 analysis, TAO was able to rebound on its identified support at $190. The bullish hypothesis was realized upon reaching this level. Bittensor reached $270 before continuing its rebound in the following seven days. Unfortunately, it was at the $360 contact that the cryptocurrency lost momentum. Thus, this price level seems to act as resistance. Notably, this increase was fueled by the overall performance of the crypto market as well as news around Grayscale and its new fund dedicated to decentralized AI including the crypto project.
At the time of writing, the Bittensor price is trading around $330. These latest bullish fluctuations have allowed TAO to move back above the identified value zone close to $280. However, this has not yet truly countered the short-term bearish structure of the cryptocurrency. Fortunately, one can be reassured with the medium-long term structure of the crypto which, for its part, seems to remain bullish, although the 50 and 200 moving averages may cast doubt by forming a death cross. On the side of the crypto’s dynamics, it is not surprising that the latter has rebounded as demonstrated by its oscillators as well as its price itself. Naturally, the continuation of this would be appreciated in order to dispel pessimism around the future of the AI crypto price.
The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today an instructor at Family Trading, a community of thousands of active prop traders since 2017. There you will find Lives, educational content, and support around financial markets in a professional and warm atmosphere.
Open interest in perpetual contracts on Bittensor seems to have followed the trajectory of its underlying asset’s price. Indeed, the latter has increased by 100% with an addition of $27M in positions. This demonstrates an increase in speculators’ activity on Bittensor. Coupled with a positive funding rate, one can conclude a majority of optimism regarding the future of the crypto. On the liquidation side, they are not significant but recently show a majority of buyer liquidations.
Bittensor’s liquidation heatmap over the past month shows that TAO rebounded to $190 and left behind two pronounced liquidation zones. The closest is around $300. The furthest and more marked is around $235. Above the current price, one can note a still apparent zone, below $450. If the price comes close to these levels, it could trigger a massive volume of orders, thus increasing the possibility of a period of heightened volatility for Bittensor. These zones therefore represent major points of interest for investors.
After a significant drop, TAO was able to rebound, thus confirming the bullish hypothesis on its support. Bittensor showed a strong recovery. Thus, the medium and long-term structure remains positive, although some technical indications may raise doubts about its continuation. The continuation of this trend must be supported in order to dispel concerns about its future. Therefore, it will be essential to closely monitor the price’s reaction to key levels to confirm or invalidate current hypotheses. It’s also important to stay vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly depending on other more fundamental factors.