Bittensor (TAO) has experienced a significant price surge, exceeding resistance and surging over 50% in just a few days. The token is now trading above $530, showcasing strong momentum. Analysts attribute this upward trend to several factors including the expanding DeFi sector and increased institutional interest. 📈
Technical charts reveal a bullish engulfing pattern that signals potential trend reversal, as seen on the monthly chart shared by CryptoBullet1. The token experienced significant growth this month alone, rising 5% to trade around $505 after reaching its high of $539 and low of $480. This rise was further boosted by a daily gain of 6.82% as TAO/USDT broke above $480, marking it as new support.
Analyst TedPillows identified this breakout near $354, highlighting the surge since his initial call to buy. The momentum continued on the daily timeframe, further solidifying the bullish scenario if current trends persist. 📈
Meanwhile, TAO/BTC gained a remarkable 36.17% this week, reaching its highest point in nearly a year. This rise is attributed to the breakout after months of consolidation, and confirmed above short-term moving averages.
Institutional interest also played a key role in the recent rally. The TAO token achieved $1 billion in daily trading volume for the first time on November 1st, primarily driven by centralized exchanges contributing over $940 million. This milestone was further solidified with the launch of Europe’s first physically backed TAO ETP by Safello and Deutsche Digital Assets, offering 10% annual yield through staking.
This new influx of demand led to a surge in spot volume (reaching $950 million) and derivatives open interest (increasing 64.8%). However, despite the significant boost, netflow decreased from $18 million to $7 million following the ETP listing.
While the rally suggests positive sentiment across the altcoin space, potential profit-taking could moderate the pace in the coming days. Nevertheless, strong technicals and sustained volume may continue fueling short-term upside. 📈