The Rise and Potential Fall of TAO
Discover how the value of TAO, the altcoin fueling Bittensor’s decentralized machine learning network, has surged by more than 20% in the past week. However, with a key technical indicator showing signs of weakness, these gains could be at risk.
TAO Price Surge Amid Market Growth
- TAO is currently trading at $482, marking a recent rally spurred by overall market growth.
- Notably, the daily trading volume for TAO has skyrocketed to $83.2 million, reaching its highest point since April 11.
Bittensor’s Weakening Demand
- The Chaikin Money Flow (CMF) for TAO has decreased, dipping below the center zero line to -011.
- A negative divergence has formed, indicating that despite the price increase, buying volume might not be as robust as anticipated.
Should You Panic Over TAO’s Price?
- Despite the weaker buying trend suggested by the CMF, other indicators show bullish momentum and support for TAO’s price in the short term.
- The Parabolic SAR indicator shows bullish momentum, with dots positioned below the price.
- TAO’s Relative Strength Index also indicates buying pressure outpacing distribution, further bolstering the case for price support.
Price Prediction: What Lies Ahead for TAO?
- If the current trend holds and accumulation increases, TAO’s price could surge past $500 to reach $592.82.
- On the flip side, if the negative divergence persists, a correction could see TAO’s price drop to $448.60.
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