TAO Token Surges 13.16% as Volume Jumps 122%

Bittensor's TAO token has experienced a significant rebound, surging from $411 to $472 within a 24-hour period, marking a 13.16% increase. This upward momentum has been driven by a substantial increase in volume, which jumped by 122% to $588 million. The recent price action suggests that TAO has successfully defended the $400 support level and is now poised for further gains.

Market participants have shown strong demand for TAO, as evidenced by the dominance of buy orders over sell orders. The Order Delta, which measures the difference between buy and sell orders, sat at a positive 3.89k, with buy volume at 32k and sell volume at 28.19k. This positive imbalance indicates that buyers have taken control of the market, absorbing supply and pushing prices higher.

The derivatives market for TAO has also seen increased activity, with Open Interest (OI) rising by 20.59% to $260.8 million. This surge in OI, coupled with positive Funding Rates, suggests that fresh capital is entering long positions, signaling trend conviction rather than short-term noise. The bullish sentiment is further supported by the emerging 'golden cross' on the technical charts, where the 50-day Exponential Moving Average (EMA) is approaching the 200-day EMA. Historically, this technical pattern has preceded higher prices as buyers take control of the market.

If the uptrend continues and the 50 EMA flips the long-term moving averages, it could signal the continuation of the uptrend. According to the analyst's forecast, if this bullish momentum is maintained, TAO could reclaim the $500 mark. However, if bulls fail to hold the momentum and sellers retake control, a correction could occur, pulling TAO back to the $403 support level.