TAO Price Forecast: Analysts Predict Further Gains Following Bullish Breakout

TAO’s price has recently gained significant traction, breaking out of key bullish patterns that suggest further upward momentum. Analysts believe the cryptocurrency could climb another 30% from its current levels.

TAO’s Recent Performance

TAO experienced a notable price surge, jumping 12% to reach an intraday high of $388 on April 28 before slightly retreating to $372. This marks an 18% increase over the past week and an impressive 120% gain from its monthly low. The market capitalization has soared to $4.32 billion, up from approximately $1.95 billion at the start of April.

Trading activity has also intensified, with daily trading volume reaching over $208 million on April 29—an 87% increase compared to the previous day. This rise in volume reflects growing interest among traders and investors.

Strengthening Bullish Sentiment

Recent data shows a sharp increase in futures open interest, hitting a three-month high of $258 million on April 25, up from $155 million just a month ago. The simultaneous rise in price and open interest suggests a strengthening bullish sentiment.

Additionally, funding rates have turned positive, indicating that traders are now paying premiums to maintain long positions. On Binance, the long/short ratio for TAO/USDT stands at 1.14, signaling a bullish bias as more traders bet on price increases rather than declines.

Renewed Attention from Institutional Players

TAO’s recent surge appears to be fueled by renewed attention following institutional involvement. Grayscale recently highlighted its Bittensor Trust in an announcement on April 28. Although the trust was originally launched in August 2024, this update has reignited interest among the TAO community. Institutional backing from a major player like Grayscale adds credibility and boosts investor confidence.

Social sentiment around TAO remains overwhelmingly positive. Data shows that 83% of traders expect short-term gains, and TAO has maintained positive social sentiment for 12 consecutive days. The cryptocurrency is even trending on search engines as more investors and traders catch on to the hype.

Technical Analysis: TAO Price Outlook

Breakout from Falling Wedge Pattern

On the 1-day USDT chart, TAO recently broke out of a multi-month falling wedge pattern, a formation often considered bullish in technical analysis. A breakout above the upper trendline typically signals the continuation of an upward trend.

Currently, TAO is trading within an ascending channel and is approaching critical resistance near the $400 level. If the price breaks through this resistance, further gains could be on the horizon.

Chaikin Money Flow and Moving Averages

The Chaikin Money Flow (CMF) indicator has climbed to 0.13, suggesting increased buying pressure. This is a positive signal for continued upward momentum in the short term.

Additionally, a golden cross has formed on TAO’s daily chart, where the 20-day EMA has crossed above the 50-day EMA. This crossover is typically viewed as a bullish indicator. The last time this occurred, TAO surged nearly 140% within a month. If the current setup follows a similar trajectory, TAO could potentially breach the $485 resistance level in the coming weeks—representing a 30% increase from its current price.

Analyst Predictions

Market analysts remain optimistic about TAO’s potential. Analyst Quinten highlights the importance of TAO’s recent breakout above $360, suggesting that a retest of this level as support could pave the way for a move toward the $485 target.

“TAO’s breakout above $360 is a significant milestone. If it holds as support, we could see a continued rally toward higher resistance levels.”

While TAO’s current momentum is promising, traders are advised to monitor key support and resistance levels closely.

Disclosure: The content presented here is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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