Bittensor (TAO), a prominent cryptocurrency in the AI and big data space, surged by over 11% in just one day, briefly trading around $431. This impressive leap positioned TAO as a leader among AI-related cryptocurrencies, accompanied by strong performances from peers like Internet Computer (ICP), Near Protocol (NEAR), Render (RNDR), and Filecoin (FIL).

What’s Fueling TAO’s Momentum?

Technical analysis suggests a potential bullish reversal for TAO. Recently, TAO broke out above its descending channel, surpassing the crucial resistance at $429. The MACD indicator, an essential momentum gauge, climbed significantly, indicating increasing bullish momentum. The Chaikin Money Flow (CMF), reflecting sustained capital inflow, further supports a positive market sentiment.

Key Levels to Watch

Investors bullish on TAO are eyeing the $500 resistance as the next significant target. However, it’s critical for TAO to maintain a price above $400 to sustain this bullish outlook. A drop below $400 could signal weakness, potentially pushing the price down to key supports around $373 and $349.

Leveraged Trading Dynamics

Current leveraged trading patterns reveal a predominance of highly leveraged long positions between $417 and $430. This zone is sensitive: a price dip below $417 might trigger a cascade of long liquidations. Conversely, a break above $435 could ignite a swift rally by forcing short-sellers to close positions rapidly.

Should You Consider Buying TAO?

While current indicators favor bulls, traders should remain cautious. Sustained bullishness relies heavily on continuous investor interest and steady momentum indicators. Monitoring closely and adjusting strategies based on TAO’s performance around the critical support and resistance levels will be key.

Disclaimer: This article is intended for informational purposes only and should not be considered investment advice. Always conduct your own research before making any investment decisions.