Bittensor [TAO] finally reversed its trend after closing at lower lows since the breakdown at $309 several days ago. With the broader market rebounding, TAO successfully held $260 support and jumped to a four-month high of $315.
At the time of writing, TAO traded at $308, up 12.15% on the daily charts. Over the same window, the altcoin’s trading volume jumped 122% to $655 million, reflecting increased market participation.
TAO’s Futures overheat as speculators return
TAO made significant gains, largely driven by renewed speculative interest as late buyers attempted to buy into the rally. The Futures Volume Bubble Map indicated overheated market conditions, reflecting heightened FOMO as too many traders entered positions with leverage.
While overheating often signals long‐term instability and can mark a market top, prices tend to accelerate upward in the short term. Notably, retail traders have largely driven these conditions.
Traditionally, higher Futures activity suggests reduced risk-off sentiment, with risk appetite taking center stage.
With the traders’ return, massive capital flowed into the asset. According to CoinGlass data, Bittensor saw $537.7 million in Futures inflow while $524 million flowed out.
As a result, the altcoin’s Futures Netflow jumped 508% to $13.3 million at press time, indicating increased capital inflows into Future positioning.
Coupled with that, derivatives volume rose 98.8% to $1.8 billion, while the Open Interest (OI) climbed 31.4% to $403.8 million. Such simultaneous jumps indicated increased market participation and capital inflows into either short or long positions.
In this case, most traders took long positions as the Long Short Ratio jumped to 1.01, indicating market bullishness.
Can the upside hold or be a mere speculative bubble?
After breaching the key resistance level of $300, amid a wider market breakout, TAO saw massive demand, especially from retail traders. The increased demand strengthened the upside momentum.
Looking at the Relative Strength Index (RSI), the momentum indicator made a bullish crossover, hiking from 63 to 75 as of writing. A crossover to the upside here indicated rising buyer dominance, which further strengthened the trend.
With the upside move, the altcoin is currently testing the upper Bollinger Band, while holding strongly above the middle band. A successful retest of this band will validate the bullish move, positioning the altcoin for more gains.
In doing so, TAO could flip the $326 resistance and target $350. However, if momentum fades and the trend becomes a mere speculative bubble, Bittensor will breach $300 and drop back towards the $260 support level.
Final Summary
- Bittensor jumped 12%, breaking the $300 key resistance and touching a four-month high of $315.
- TAO made significant gains amid renewed speculative interest.
