The price of TAO has experienced a notable rise in the last month, propelled by an increase in interest surrounding artificial intelligence cryptocurrencies. The coin has recently surged over 60%, and various indicators and metrics provide important insights regarding its potential future performance.
While the current EMA configuration indicates strong bullish momentum, the distribution pressure on TAO continues to be a concern that could impact its ability to maintain the uptrend.
TAO Accumulation/Distribution Is Currently Negative, But That’s Not as Bad as It Seems
The Accumulation/Distribution value for Bittensor (TAO) stands at approximately -11,045, clearly signaling significant selling pressure in recent weeks. This negative figure indicates that more traders are offloading TAO instead of accumulating it, which may lead to a bearish outlook for its price in the short term.
The Accumulation/Distribution (A/D) metric is essential for grasping this market behavior. It merges both price action and trading volume to provide a clearer understanding of whether an asset is being accumulated (more buying) or distributed (more selling).
Due to this significant distribution, the price may encounter resistance in establishing a sustainable upward trend unless a change in sentiment occurs.
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If the A/D line begins to stabilize or trend upward, it may indicate a resurgence of interest and accumulation, potentially reversing the current downward trend. Given that TAO has increased by over 60% in the last month, there could be pronounced selling pressure in the near term.
Nonetheless, the Accumulation/Distribution metric at -11,000 may not be substantial enough to trigger a bearish trend on TAO. It’s crucial to monitor this metric; if it continues to decline, it could alter market sentiment toward the coin.
TAO RSI Is Still Favorable for Further Growth
The Relative Strength Index (RSI) for Bittensor currently stands at 60. This is significant as it marks a considerable shift in momentum since September 16, when the RSI was at 39. This increase demonstrates that buying interest has escalated over this period, reflecting stronger bullish sentiment for TAO.
An RSI within this range indicates a strengthening market that’s not yet overbought, serving as a potential signal for additional price appreciation in the short term if the momentum persists.
The RSI serves as a well-regarded momentum oscillator that gauges the speed and change of price movements. With a scale ranging from 0 to 100, it typically uses thresholds of 30 and 70. An RSI below 30 indicates potential overselling, signaling a buying opportunity, whereas an RSI above 70 suggests potential overbought conditions, indicating the possibility of a correction or pullback.
With TAO’s RSI positioned at 60, the token finds itself in neutral to slightly bullish territory, suggesting there’s still room for growth before reaching overbought levels.
TAO Price Prediction: Could It Reach $700 By October?
Currently, TAO exhibits a highly bullish setup, highlighted by its Exponential Moving Average (EMA) lines being distinctly spread apart. This spread indicates that the shorter-term EMAs are significantly higher than the longer-term ones, confirming a strong upward trend. The widening gap between these EMAs reflects consistent price increases and growing upward momentum.
EMA lines serve as technical indicators that prioritize more recent prices, rendering them responsive to market fluctuations. When the price consistently remains above the EMAs, and the shorter-term EMAs are positioned above the longer-term ones, it validates a robust uptrend.
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If TAO can maintain its current momentum, bolstered by rising interest in AI coins, it may have the potential to exceed $600 for the first time since April 2024. Surpassing the crucial resistance level of $625 could propel the price even higher, potentially reaching $700 — an increase of 26.81% from its present value.
Furthermore, Bittensor’s mindshare and sentiment have recently achieved new all-time highs, which may further drive a new price rally.
Conversely, if TAO fails to sustain its upward momentum, there are risks to consider. A further decline in the Accumulation/Distribution value, indicating increasing selling pressure, coupled with the RSI moving into overbought territory (above 70), could trigger a significant price pullback. In that scenario, the price may fall as low as $284 in the upcoming weeks.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis is intended for informational purposes only and should not be viewed as financial or investment advice. BeInCrypto strives for accurate, unbiased reporting, but market conditions may change without notice. Always perform your own research and consult with a professional before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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