TAO Price Poised for 46% Surge, Key Levels to Watch
In the ongoing market recovery, Bittensor’s local token Tao appears to be bullish and is ready for a large upside rally due to strong prices. With two large green candles, Tao recently got rid of the strong downward trend line it has been facing since early December 2024.
Road price action and upcoming levels
After the breakout, Tao appears to be shifting from its long-term bearish trend to a bullish phase. However, before this shift occurred, the asset faced a $475 mark from 200 exponential moving average (EMA) and horizontal levels of light resistance.
Based on historical price momentum, if Tao violates this barrier and closes the daily candles above, it can soar 46% to reach the future $720 level.
However, the average direction index of assets (ADX) is currently at 21 and appears to be declining, indicating that Tao lacks strong momentum and therefore the assets are difficult to maintain their rally.
A $4.52 million worth of Tao dump to exchange
Despite these bullish price movements, long-term holders are still unloading assets, as revealed by Chain Analytics Small shop. Data from spot inflows/outflows suggests that the exchange witnessed $4.52 million worth of Tao tokens during the recent uptrend, indicating a potential sell-off.
This inflow of exchanges can create sales pressure and lead to price drops. However, in this case, the emotional and market structure differ, which could pose a challenge for assets to gather in the coming days.
Open interest rises
And over the past 24 hours, Tao’s open interest (OI) has soared 27%, indicating traders’ strong interest and confidence in assets.
At press time, the Bulls held a high leverage level of $435.9 in the Bulls’ long position worth $7.71 million, while the upper side was $473, where the Bears held a short position worth $5.05 million. This liquidation level clearly identifies the bulls that are currently dominating the assets.
