Bittensor (TAO) Sees 130% Gains After Open Interest Hits ATH

Bittensor’s (TAO) Open Interest has reached a new peak, with sentiment improving as well.
Over the past month, TAO has surged by more than 130%.

Bittensor (TAO) has outperformed Bitcoin (BTC) and the larger cryptocurrency market by gaining 13% in the last 24 hours. Notably, TAO has been a leading asset over the past 30 days, showing an appreciation of over 130%.

As reported by Artemis, the Artificial Intelligence (AI) crypto sector has been the frontrunner in the market over the last month, achieving a 37% weighted average increase.

(Source: X)

In just a month, the total market capitalization for AI & Big Data cryptocurrencies has increased from $26 billion to $35 billion, according to CoinMarketCap. This growth has prompted gains for TAO, which ranks as the second-largest AI cryptocurrency with a market cap of $4 billion.

Open Interest Reaches Record Levels

According to Coinglass, Bittensor’s Open Interest has skyrocketed to an all-time high of $189 million, having more than tripled from $50 million on September 5th.

(Source: Coinglass)

An increase in Open Interest indicates that more traders are establishing and holding their positions on TAO.

When Open Interest rises alongside the price, it signifies that more capital is entering TAO, validating a sustained upward trend and the potential for further gains.

In addition to Open Interest, derivatives data on TAO indicated a favorable market sentiment towards the asset. The long/short ratio was at 1 at the time of writing, reflecting balanced market sentiment.

Furthermore, over $800,000 in short positions were liquidated in the past 24 hours, suggesting the market has not favored short sellers.

(Source: Coinglass)

Technical Analysis of TAO

At the time of writing, TAO was priced at $590. The token displayed a bullish V-shaped recovery pattern on the four-hour chart, indicating that bullish momentum may persist.

At its current price, TAO appeared to be at a critical resistance level. The green histogram bars indicated potential for the token to surpass this resistance, driven by strong buying momentum.

(Source: Tradingview)

Should TAO breach this resistance level, the next target price will be $618. As of now, buying volume appears robust, with the Chaikin Money Flow (CMF) recorded at 0.21, indicating a high likelihood of a breakout.

Simultaneously, the Moving Average Convergence Divergence (MACD) line has crossed above the Signal line, suggesting that bullish momentum is potent. The green bars on the MACD histogram further imply that buyers are in control.

The positive outlook for TAO is reinforced by its funding rates, which have been positive since late September. This indicates that long traders are willing to pay a fee to short traders to keep their positions open.