Will a $12 Million Influx Spark a Bullish Reversal for Bittensor

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Will a $12 Million Influx Spark a Bullish Reversal for Bittensor?
Meta Description: Bittensor price noted a strong bounce back from the monthly lows and surged nearly 40% a week

Bittensor price made a strong recovery rising nearly 42% a week after getting buyers support from the monthly lows.
The Open Interest contracts have noted an impressive 40% surge a week indicating an improved sentiment.

Bittensor price noted a strong bounce back from the monthly lows and surged nearly 40% a week. The recent surge in the price hints at the formation of bottoming out and breakout of a correction phase. TAO's price had been in a correction phase since hitting an all time high in April 2024.

Despite gaining over an impressive 40% a week, the long trend still awaits a bullish reversal above the $360 level. As of now, Bittensor was exchanging hands close to $305, recording a nearly 3.2% rise in intraday.

Also, the on chain metrics have noted a significant change in the recent sessions indicating a continuation in the price. TAO is an open source, decentralized blockchain protocol. It has a live market capitalization of $2.19 Billion and ranks 34th in the cryptoverse.
Open Interest Contracts Grows By 40% A Week
In Tandem with a rise in Bittensor price in the last one week, there has been a notable development in the Open Interest contracts as per the analysts. As per the analysts, the Open interest contracts have surged by a massive 40% a week indicating the investors confidence.

<iframe title="Santiment Chart: Total Open Interest in USD (TAO), Price (TAO)" width="800" height="425" src="embed.santiment.net/chart?ps=bittensor&pt=TAO&df=2024-07-10T18:30:01.006Z&dt=2024-08-11T18:29:59.006Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>

Source: app.santiment.net

The OI data has surged from $18 Million to $32 Million a week rising nearly 12 Million. A 40% jump in the inflow highlights the improved confidence of the investors. As of now, the volume to market cap ratio was 2.54% suggesting low volatility.

Moreover, the transaction volume increased by 2.52% a day to $58.78 Million indicating a rise in demand. Out of a total supply of 21 Million TAO tokens nearly 34.3% i.e. 7.2 Million tokens are currently in circulation.
Is Bittensor (TAO) Ready For A Bullish Reversal
The daily chart highlights a strong recovery from the monthly lows thus creating a double bottom pattern. A bullish breakout would be confirmed if the price manages to surpass the neckline of the double bottom pattern at $359.

However, until the TAO price is maintained below the neckline of $359 it may maintain a correction phase. From a technical standpoint, Tao price has surpassed the 20 days and 50 day Exponential moving average indicating a bullish outlook in the short term. However, the bulls need to conquer the 200 day EMA in order to make a reversal.

At the time of writing, the RSI line was placed at 50.4 points and that of the 14 day SMA line was placed at 44.60 points. Moreover a bullish crossover between both the lines was observed indicating a recovery in the crypto.

Bittensor price surged nearly 40% in a week, hinting at a potential breakout from its correction phase. Despite this rise, a bullish reversal would be confirmed above the $360 level. Currently trading around $305, Bittensor saw a 3.2% intraday increase. Open Interest contracts rose 40% to $32 million, indicating investor confidence.

Moreover, the daily chart shows a double bottom pattern, with a bullish breakout above $359. TAO has surpassed the 20 and 50-day EMAs, but needs to conquer the 200-day EMA for a reversal. RSI and SMA lines indicate a recovery trend.