🚀 Bittensor (TAO) Price Poised for Breakout: AI Tokens Surge 17% Weekly as Bullish Signals Flash
AI crypto tokens are stealing the spotlight—and Bittensor's TAO is leading the charge with textbook bullish momentum. Here's why traders are piling in.
The TAO of Gains: Bittensor's decentralized machine learning protocol is riding the AI hype wave, with its token flashing multiple buy signals. No surprise—the sector just posted a 17% weekly rally while traditional finance still debates whether AI is 'just a fad.'
Technical Tailwinds: TAO's chart patterns mirror the explosive early days of Ethereum's ICO boom—minus the gas fees that would've made your banker faint. Symmetrical triangles, RSI divergence, and a volume spike suggest whales are accumulating.
The Cynic's Corner: Sure, 17% weekly gains are nice—until some hedge fund 'discovers' AI tokens and turns them into the next over-leveraged ETF. But for now? The algorithms are buying, and the humans are chasing.
Bittensor flaunts bullish outlook
The Bittensor derivatives market has steadily grown with Open Interest (OI) surging to $318 million, marking a significant step above December peak levels of $304 million, according to CoinGlass data.
Open Interest refers to the total value of all the futures and options contracts that have not been settled or closed. With the volume increasing in tandem to $630 million, interest in Bittensor could keep the price elevated as traders increasingly bet on TAO price edging higher. This is evidenced by a positive long-to-short ratio of 1.5988 on Binance.
Bittensor Futures Open Interest | Source: CoinGlass
Bittensor is the largest Artificial Intelligence (AI) token, with a market capitalization of $4.4 billion. Interest in AI tokens has been steady, reflected by a cumulative 17% increase over the past week. In total, the sector boasts a market capitalization of $33 billion.
Technical outlook: Bittensor upholds bullish structure
Bittensor’s price holds above a recently broken descending trendline while trading at $430 at the time of writing. The uptrend that followed the June lows of $287 is supported by a Golden Cross pattern established on Friday, when the 50-day Exponential Moving Average (EMA) crossed above the 100-day EMA.
The day’s close could confirm a second Golden Cross pattern if the 50-day EMA remains above the 200-day EMA, reinforcing the bullish structure.
Interest in the AI token could remain at elevated levels should the Moving Average Convergence Divergence (MACD) indicator continue to sustain a buy signal triggered on July 9.
TAO/USDT daily chart
The Relative Strength Index (RSI) is at 64 points, indicating bullish momentum is building behind Bittensor, with the uptrend likely to hold steady in upcoming sessions. Still, higher RSI readings WOULD call for caution among traders as they indicate an overheating market ahead of a potential pullback.
A trend reversal could also occur due to heightened profit-taking activities as well as the possibility of market dynamics changing, particularly with the United States (US) Federal Reserve (Fed) interest rate meeting next week and the implementation of President Donald Trump’s higher tariffs on August 1.
Key areas of interest to traders include support provided by the moving averages, such as the 50-day EMA at $375, the 200-day EMA at $373, and the 100-day EMA at $369.
Open Interest, funding rate FAQs
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rates affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
