Potential 30% spike in TAO price arises with bullish technical factors appearing
Cryptocurrency Alert: TAO's meteoric rise continues, and analysts predict a potential 30% surge on top of its recent gains!
TAO, powered by the Bittensor network, has been making headlines due to its impressive run lately. On April 28, it hit an intraday high of $388, up 12% from the previous day and a massive 120% up from its monthly low! Its market cap has exploded to over $4.32 billion, way up from the $1.95 billion it held just a month ago.
This surge was accompanied by a sharp increase in futures open interest, hitting a 3-month high of $258 million on April 25. This indicates strengthening bullish sentiment, as the rise in price and open interest often points to market optimism.
In terms of trading volume, it was up 87% on April 29, reaching over $208 million, signaling a rise in trading activity.
Looking at the technical analysis, TAO recently broke out of a multi-month falling wedge pattern, a setup often considered bullish. This breakout is typically a signal of the continuation of an upward trend. Currently, TAO is moving within an ascending channel, nearing key resistance near the $400 level. Analysts believe it could test and potentially break this level soon.
A golden cross has also just formed on the daily chart, with the 20-day EMA crossing above the 50-day EMA. This is a bullish indication that could potentially drive TAO to breach the $485 resistance level, which is around 30% higher than its current price, in the coming weeks.
All this being said, predictions suggest that TAO could see even more significant gains. According to one analyst, TAO could potentially reach the $485 target if it retests the $360 level as support. But, let's not forget the volatile nature of the cryptocurrency market. Factors such as market sentiment, adoption rates, and broader economic conditions can all influence TAO's price.
As always, investing in cryptocurrencies carries a high level of risk. It's essential to conduct thorough research and consider professional advice before making investment decisions. Stay tuned for updates on TAO's price action!
- The cryptocurrency TAO, recently reached an intraday high of $388, after a 12% increase from the previous day and a 120% increase from its monthly low.
- On April 25, the open interest for TAO's futures contracts hit a 3-month high of $258 million, signifying stronger bullish sentiment among investors.
- In terms of daily trading volume, TAO saw an increase of 87%, reaching over $208 million on April 29, demonstrating an uptick in trading activity.
- TAO recently broke out of a multi-month falling wedge pattern, which is typically considered a bullish indication of an extended upward trend.
- Looking towards the future, TAO could potentially test and breach the $400 level, soon, according to analysts, and might reach the $485 level if it retests the $360 level as support.
- A golden cross has formed on TAO's daily chart, as the 20-day EMA crossed above the 50-day EMA, serving as a potentially bullish indicator.
- It is essential for investors to conduct thorough research, consider professional advice, and keep in mind the volatile nature of the cryptocurrency market, before making investment decisions in TAO or any other cryptocurrency.
