Key takeaways
What sparked Bittensor’s recent price surge to a 10-month high?
The launch of the first staked TAO ETP in Europe has sparked renewed investor interest and capital inflows.
What do current market indicators suggest about TAO dynamics?
Strong RSI and bullish futures data indicate continued bullish momentum, with $590 as the next resistance.
After trading on a thin margin for two weeks, Bittensor (TAO) broke out and hit a 10-month high of $539.
At press time, Bittensor was trading at $528, up 23.62% in the last 24 hours. During the same window, Aicoin’s trading volume jumped 109% to $950 million, indicating a steady inflow of capital.
But what is behind the gathering of Tao today?
Bittensor ETP debuts in Europe
Bittensor recovered after launching the first TAO exchange-traded product (ETP) in Europe. According to a press release, Deutsche Digital Assets and Safello will list Bittensor Staked TAO (ETP) on six Swiss exchanges.
Physically, the product will be backed by TAO tokens kept in cold storage with a regulated custodian. The fund will operate under the name Safello Bittensor Staked Tao, providing direct exposure to investors.
Additionally, all investors will enjoy a 10% annual return, with rewards automatically reinvested in the fund at a maximum rate of 1.49%.
Most importantly, the ETP seeks to connect TradFi with decentralized AI, unlocking European institutional capital.
One-off demand rebounds
Importantly, after taking a step back from the market, buyers returned to accumulate TAO following Deutsche Digital Asset’s announcement of the ETP launch.
According to Coinalyze, Bittensor recorded a positive market delta between October 31 and November 1.
During this period, the altcoin recorded a buying volume of 400,000, compared to a selling volume of 359,000.
Source: Coinalyse
As a result, the altcoin recorded a positive buy-sell delta of 41,000, a clear sign of aggressive spot accumulation.
Derivatives become more bullish
Just as investors rushed into the spot market, they also entered the futures market to strategically position themselves following recent developments.
According to CoinGlass data, Bittensor derivatives volume surged 90.63% to $2.37 billion, while Open Interest (OI) surged 64.8% to $446.28 million, at the time of writing.
Source: Coinglass
Typically, when OI and volume increase in tandem, it signals increased participation and steady capital flow.
In fact, futures inflows jumped to $678 million, while outflows fell to $649.5 million. As a result, the net flow of futures contracts jumped 172.16% to $28.53 million, indicating a massive inflow of capital.
Source: CoinGlass
Meanwhile, the altcoin’s Long Short ratio increased to 1.038, with Binance’s top traders ratio reaching 1.5, indicating higher demand for long positions.
Often, when long positions dominate, it indicates that most participants are optimistic and expect prices to continue rising.
Profit Takers Also Join the Party
As expected, after Bittensor hit January levels, investors holding stocks underwater rushed to cash out.
According to CoinGlass, the altcoin recorded positive Spot Netflow between October 31 and November 1.
Source: CoinGlass
At press time, Netflow stood at $7.05 million, down from the previous day’s $18.12 million, indicating strong profit-taking.
Historically, increasing profits preceded lowering prices if demand failed to keep pace.
Can the momentum hold?
According to AMBCrypto, Bittensor recovered as demand increased in the market following the launch of the first TAO ETP in Europe.
At the time of writing, the altcoin’s relative strength index (RSI) surged to 70, indicating the growing dominance of buyers. Likewise, its sequential pattern strength jumped to 35, further validating this bullish momentum.
Source: TradingView
When these indicators are defined this way, they suggest potential for the trend to continue. Therefore, if current conditions persist and the bulls continue to dominate, TAO’s uptrend will continue, with $590 as the next significant resistance.
However, if profit takers increase their spending, thereby overwhelming buyers, the market will correct and find support around $455.
