- Bittensor (TAO) Open Interest Hit an All-Time High, With Positive Sentiment Also Rising
- Over the past 30 days, TAO has gained over 130%
Bittensor (TAO) outperformed Bitcoin (BTC) and the broader cryptocurrency market with gains of 13% in the past 24 hours. In fact, TAO has also been one of the best performers over the past 30 days, with the altcoin appreciating by over 130%.
According to Artemis, the artificial intelligence (AI) crypto sector was the market leader over the past month, with a weighted average gain of 37%.
(Source: X)
In just one month, the total market cap of AI and Big Data cryptos increased from $26 billion to $35 billion, according to CoinMarketCap. This growth has generated gains for TAO, which is the second largest AI crypto with a market cap of $4 billion.
Open Interest Hits All-Time High
According to Coinglass, Bittensor’s open interest reached an all-time high of $189 million. This figure was multiplied by more than 3 compared to the 50 million dollars on September 5.
(Source: Coinglass)
A rise in Open Interest indicates that more and more traders are opening and maintaining their positions on TAO.
When Open Interest rises alongside price, it shows that more money is flowing into TAO. This confirms a sustained uptrend and the likelihood that the token’s gains could extend.
Besides Open Interest, derivatives data on TAO suggests positive sentiment towards the token. The long/short ratio stood at 1 at press time, showing balanced market sentiment.
Additionally, over $800,000 of short positions were liquidated in 24 hours, implying that the market did not favor short traders.
(Source: Coinglass)
Technical analysis of the TAO
TAO was trading at $590 at press time. The token has formed a V-shaped bullish recovery on the four-hour chart – a sign that the bullish momentum may continue.
At press time, TAO appeared to be trading at a crucial resistance level. The green bars on the volume histogram show that the token could break above this resistance level as the buying momentum is strong.
(Source: Tradingview)
If TAO breaks this resistance level, the next target price will be $618. At the time of writing, buying volume was high as Chaikin Money Flow (CMF) was positive and at 0.21. This reinforces the probability of a breakout.
At the same time, the Moving Average Convergence Divergence (MACD) line moved above the signal line – a sign that bullish momentum was strong. The green bars on the MACD histogram further suggest that the bulls might be in control.
The positive sentiment around TAO is also demonstrated by its funding rates, which have been positive since the end of September. This means that long traders are willing to pay fees to short traders to maintain their positions.
(Source: Coinglass)
