Bittensor (TAO) Price Gains 20% in Bullish Comeback, Looks to Surpass $600

Key Takeaways

• After falling initially to $320, TAO’s price reversed its trend and is now up 20% within the past week.
• Open Interest has also increased, indicating high speculative activity and a possible sustained hike.
• The daily chart shows that TAO has broken out of a falling wedge, as the price could rally by 45%.

Bittensor (TAO) is among the top gainers out of the top 100 today. In the past 24 hours, TAO’s price has surged 12%, extending its seven-day gains to 20%.

This hike contrasts with TAO’s performance in January, when the altcoin plummeted from $565 to $320.

With momentum building, the token is now eyeing a breakout above $600. This analysis checks whether the cryptocurrency can reach this target.

TAO Bears No More in Control

On the 4-hour chart, TAO formed a bear flag between Jan. 31 and Feb. 4. A bear flag is a pattern formed by two declines, separated by a brief consolidating retracement period.

The chart shows a downtrend with increasing volume, followed by a brief upward bounce. Later on, the price falls again.

As shown below, TAO’s price experienced this when the bears cut short the uptrend at $400. Afterward, it plunged 20% to $320. However, the token has fully recovered from these losses.

The image below shows the recovery due to increased buying pressure, as indicated by the Chaikin Money Flow (CMF). On Feb. 7, the CMF reading was -0.30, indicating high selling pressure at that time.

The decline in the indicator’s rating also meant that TAO was close to the oversold region. However, with the indicator above the zero signal line, TAO has been able to overcome bearish pressure.

If sustained, the altcoin’s value could continue moving up the charts. Furthermore, like the price, TAO’s Open Interest (OI) has significantly increased.

The hike in the OI indicates rising speculative activity and increased buying pressure in the derivatives market. From a price perspective, an increase in the OI, alongside a price rise, could strengthen the uptrend.

Thus, if the OI value continues to rise, TAO’s price might continue to trade higher.

TAO Price Eyes Another 45% Hike

A look at the daily chart also seems to validate this bullish outlook, as TAO has broken out of a falling wedge. A falling wedge is a bullish pattern formed by two descending trend lines—one connecting lower highs and the other connecting lower lows.

The pattern hints toward seller exhaustion as buyers try to capitalize on this. On the chart, buying pressure began when TAO’s price hit $320.

As a result, the token has broken above the upper trendline of the wedge pattern at $396. The Moving Average Convergence Divergence (MACD) also indicates a potential price increase, as the 12-day EMA (blue) has crossed above the 26-day EMA (orange).

If this remains the same, TAO’s price might climb by another 45%. If this happens, the altcoin could rally to the 0.236 Fibonacci level at $624.31.

However, if buying pressure fades, this might not be the case. In that scenario, the cryptocurrency’s value could decline to $333.31.

TAO could experience a correction to $220 in a highly bearish scenario.