TAO, the native token of Bittensor, has surged 6% in the last 24 hours, breaking through the two-week horizontal channel that has been consolidating prices since September 23rd.
The rally occurs as crypto market liquidity improves, and capital inflows rise across risk assets amid weakening and uncertainty in traditional financial markets. As bullish sentiment spreads across the wider crypto market, TAO could potentially prepare for new local highs if current momentum applies.
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Traders stack up just as Tao is bullish
Tao traded within the horizontal channel between September 23rd and October 7th, resulting in a sluggish price performance. However, as broader market sentiment improves, Altcoin was closed above the upper line of yesterday’s integration range, suggesting that Bulls may have regained short-term control.
As its prices have risen in the past day, daily trading volumes have also surged sharply, examining the strength behind the upward movement. Currently, TAO’s $212 million trading volume has increased 108% over the past 24 hours.
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When the price and volume of assets rise simultaneously, the upward movement is driven by true market demand rather than large, isolated or speculative transactions. This trend examines Tao’s breakout and suggests that new capital is flowing into the market, increasing the likelihood of sustained gatherings.
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Furthermore, Tao’s long/short climb ratio supports positive momentum. At the time of the press, this was 1.01, indicating that market participants are leaning heavily towards their strengths.
A long/short ratio measures the percentage of traders holding a long position relative to those holding a short position (betting that the price of an asset will rise).
Below is one signal indicating that most participants bet on the downside. Conversely, like TAO, ratios above one indicate that more traders expect upward momentum, reflecting bullish sentiment in the derivatives market.
Tao’s next destination could be $373 – if the buyer is under pressure
Tao’s recent breakout, coupled with its healthy on-chain sentiment and rising spot demand, suggests that traders are positioning for potential continuity of the uptrend. If purchasing pressure continues, Tao could retest its early September highs and rise to $373.31.
However, if demand wanes, the tokens could lose momentum and drop to $333.9. If this support floor becomes weak, the price of the Tao can return to the horizontal pattern and fall below $320.
