Bittensor (TAO) experienced a sharp increase in price, as its breakout-induced bull run continued, putting it among the strongest altcoins. This follows the confirmation of the breakout trend, which has brought about solid positive momentum, albeit with indications of easing.
At the time of writing, TAO is trading at $334.62, recording a 24-hour trading volume of $1.36 billion and a market capitalization of $3.63 billion, according to CoinMarketCap data. The asset has gained 7% over the last 24 hours, reflecting sustained buying interest following its recent breakout.
Source: CoinMarketCap
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Bittensor Rally Gains Bullish Momentum
A prominent crypto analyst, JAVON MARKS, praised the excellent technical performance of TAO, writing in his X post that it had gained more than 100% since it broke through from the falling wedge formation.
Source: JAVON MARKS’s X Post
MARKS noted that such a bullish pattern is still in place, thus hinting at the likelihood of more gains ahead. A price target of about $497 was set, indicating that TAO would be able to achieve another rise of 44%, provided momentum continued.
TAO Holds Firm Above Key Support Levels
Technically, TAO is still trading above important levels of moving averages, thus supporting the positive trend. The stock is trading well above its 20-day simple moving average level of $309.49 and is also trading much above its 50-day moving average level of $245.89.
Momentum indicators also indicate strength with some warnings. The current value of the RSI indicator is 68.21, which is slightly below the level of 70, indicating that buying momentum is still high but may soon reach its limit.
Source: TradingView
Although there is an upward trend overall, there are already some early warning signals in the momentum indicators. This can be seen in the MACD indicator, where the MACD line crosses below the signal line in a small bearish move. Also, the histogram has gone negative.
Outlook Remains Bullish With Caution
Overall, the current pricing model for Bittensor still appears bullish even after breaking out, owing to the underlying fundamentals. However, due to the reversal in momentum indicators, a consolidation period might occur before continuing further.
In case the bulls continue their momentum, TAO may slowly gravitate towards the target price of $497. On the other hand, sustaining support at near levels will be vital in maintaining the existing trend pattern.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
