Bittensor’s native token, TAO, surged 6% in the past 24 hours, breaking out of a two-week horizontal channel that had been consolidating its price since September 23rd.
This rally comes as crypto market liquidity improves, leading to rising capital inflows across risk assets amid USD weakness and uncertainty in traditional financial markets. As bullish sentiment spreads to the broader crypto market, TAO could set itself up for new local highs if current momentum holds.
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Traders stack up as Tao bullishly reverses
Tao traded within a horizontal channel between September 23rd and October 7th, with price performance subdued. However, as broader market sentiment improves, the Altcoin closed above the upper line of its consolidation range yesterday, suggesting that Bulls may have regained short-term control.
As its price has increased over the past day, its daily trading volume has also spiked sharply, validating the strength behind the upward move. Currently worth $212 million, TAO’s trading volume has increased by 108% in the past 24 hours.
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When an asset’s price and trading volume rise simultaneously, the upward movement is driven by genuine market demand rather than isolated or speculative large trades. This trend validates Tao’s breakout and suggests new capital is flowing into the market, increasing the likelihood of a sustained rally.
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Additionally, Tao’s climbing long/short ratio supports positive momentum. As of press time, this is 1.01, indicating that market participants are leaning heavily in favor of the upside.
The long/short ratio measures the proportion of traders holding long positions (bets that the price of an asset will rise) versus those holding short positions.
Here’s one signal that shows most participants are betting more on the downside. Conversely, similar to TAO, a ratio above 1 indicates that more traders are expecting upward momentum, reflecting bullish sentiment in the derivatives market.
Tao’s next destination could be $373 – if buyers apply pressure
Tao’s recent breakout, coupled with its healthy on-chain sentiment and rising spot demand, suggests that traders are positioning for a potential continuation of the uptrend. If the buying pressure continues, Tao could retest the early September highs and rise to $373.31.
However, if demand wanes, the token could lose momentum and drop to $333.9. If this support floor weakens, Tao’s price could move back within a sideways pattern and try to break below $320.
