Bittensor (TAO) price has dropped by 6% in the last 24 hours, reversing the earlier trend where it closed in on $700 just days ago. This decline has ensured that TAO’s price is now below the $600 threshold.

With this condition, the altcoin may struggle to retain its current levels, as this analysis shows that it could soon break below $500. Here is why.

Bears Take Control of Bittensor’s Momentum

According to Santiment, the Weighted Sentiment for TAO has fallen into the negative region. This metric considers unique social volume, reflecting the crypto community’s overall perception of a project.

When the reading is positive, it signals that market participants are confident in potential short-term gains for a cryptocurrency. Conversely, a negative reading suggests that most are anticipating a bearish move.

At the time of writing, TAO’s sentiment reading stands at -0.026. This indicates a broadly bearish outlook for the altcoin, suggesting that demand for TAO could decline, and its price may continue to decrease.

Read more: How to Invest in Artificial Intelligence (AI) Cryptocurrencies

Another indicator suggesting that TAO’s price might decline is the 20-day Exponental Moving Average (EMA). The 20 EMA is calculated by averaging the asset’s prices over the past 20 trading days, giving more weight to the most recent prices and making it more responsive to recent price movements.

When the price is above the EMA, the trend is bullish. However, as soon as the price drops below the threshold, the token undergoes a correction. For instance, when a similar thing happened around July 31, TAO’s price dropped by 32% within three days.

On August 28, the token fell below the 20 EMA, and by September 6, it had lost 25% of its value. If TAO drops below this threshold again, it could face a double-digit correction.

TAO Price Prediction: Sharper Decline

On looking critically again at the daily chart, BeInCrypto observes that the Moving Average Convergence Divergence (MACD) has turned negative. The MACD  is primarily a technical oscillator used to measure momentum and trade trends.

When the MACD is positive, it signals bullish momentum, suggesting that price could rise. Conversely, a negative MACD reading points to bearish momentum. In TAO’s case, the MACD shows that the 12-day EMA (blue) crossed below the 26-day EMA (orange), indicating that sellers are in control and reinforcing the bearish sentiment.

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If this remains the same, TAO’s price might sink below the 38.2% support floor and hit $452.30. On the contrary, the altcoin could bounce if bulls ensure that it does not drop below the support. Should that happen, TAO might jump to $648.99.

Shiba Inu’s price currently needs help finding a clear direction, with its key momentum indicators signaling a weakening trend and reduced momentum. This indicates a consolidation period for the leading meme coin, where neither bullish nor bearish forces dominate.

However, this has created a favorable buying opportunity for large investors who have gradually accumulation the coin over the past few days. If SHIB whales successfully trigger a broader market buying frenzy, the cryptocurrency could experience a 32% gain. But how soon can this happen?

Shiba Inu Whales Spot an Opportunity 

Since entering a sideways trend, Shiba Inu’s price has encountered resistance at $0.000018 and found support at $0.000016. A key indicator of this consolidation is the tightening gap between the upper and lower bands of its Bollinger Bands.

The Bollinger Bands, which measure market volatility, are useful for identifying potential overbought or oversold conditions. When the distance between the bands narrows, it signals decreasing volatility, suggesting the asset is trading within a tighter range. This low-volatility phase often precedes a breakout, where a sharp price move may occur as volatility rises once more.

Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

This consolidation phase, where neither bullish nor bearish sentiment dominates the market, has created an attractive entry point for whales. BeinCrypto’s assessment of Shiba Inu whale activity has revealed that these large investors have steadily increased their holdings.

According to Santiment’s data, the count of Shiba Inu whales that hold between 10,000 and 1,000,000 coins has spiked by 0.4% over the past few days. 

Moreover, the inflow of large holders has climbed by 15% over the past seven days, confirming their buying activity. When large holders’ inflows increase, it indicates that whales are moving significant amounts of the asset into their wallets. This is a bullish signal that can also prompt retail investors to buy an asset, which will contribute to driving up its value.

SHIB Price Prediction: All Rests With These Large Holders

If the surge in whale accumulation triggers widespread buying, Shiba Inu’s price could break out of its tight range and enter an uptrend. The price would likely surge past the $0.000018 resistance level and rally toward $0.000020 — a price last seen in June.

Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

However, if whale activity declines, Shiba Inu’s price may remain stuck in its narrow trading range longer than anticipated. This could also lead to a potential drop below the $0.000016 support level, with the price possibly retreating to $0.000010.

Bitwise has taken another step towards launching an XRP-based ETF, updating its submission to the US Securities and Exchange Commission (SEC).  Based on the filing, the crypto index fund manager revised its S-1 registration, clarifying the structure of the trust, custody measures, and the processes for share creation and redemption.

XRP’s regulatory status remains contentious, with the uncertainty playing a role in Bitwise’s move to update its filing.

Bitwise Updates XRP ETF Filling

A key highlight of the new filing is the trust’s use of cold storage for most of its XRP holdings. This ensures enhanced security, with only a limited amount moved to hot storage to facilitate efficient basket creations and redemptions when necessary.

The updated structure of the trust details the process of creating and redeeming shares in blocks of 10,000 units, referred to as “Baskets.” The number of XRP required per Basket will be adjusted daily, accounting for any accrued fees or expenses.

Additionally, the XRP Custody Agreement emphasizes plans to keep the trust’s assets separate from the custodian’s other holdings. This segregation aims to protect the private keys associated with the XRP and enhance overall security.

To streamline trading, Bitwise has appointed a Prime Execution Agent. This agent will handle the purchase and sale of XRP across major platforms like Bitstamp, Kraken, Coinbase, and LMAX. Their role includes providing short-term financing, known as Trade Credits. These ensure the execution of orders promptly, even if the trust’s XRP or funds are temporarily unavailable.

Read more: XRP ETF Explained: What It Is and How It Works

Similarly, Coinbase Global holds a commercial crime insurance policy covering risks such as theft, fraud, and cyber-attacks. This adds to the guardrails, with Coinbase affiliated with Prime Execution Agent and the XRP Custodian. Nevertheless, Bitwise articulates that this policy stands for all Coinbase customers, thereby limiting its ability to cover specific losses related to the trust.

The revision builds on the initial S-1 form submitted on October 2, which was Bitwise’s first formal attempt to introduce an XRP ETF to the US market. Canary Capital is another firm pushing for this financial instrument, with rising interest sidestepping a possible Solana ETF.

Bitwise Trust Hinges On XRP Token Classification

The update also highlighted ongoing regulatory uncertainties surrounding XRP. Bitwise cautioned that if XRP is classified as a security, the trust may be forced to liquidate its holdings. The outcome of the SEC’s appeal in the Ripple case will significantly influence the future of the Bitwise XRP ETF.

This decision could directly impact whether the ETF moves forward. In light of this, the update introduced measures to protect investors and ensure compliance with federal securities laws. As BeInCrypto reported, the Ripple vs. SEC case is a lengthy legal battle, potentially extending through July 2025.

Of note, the SEC’s appeal, filed on October 2, faces a deadline of Friday, October 18. If the regulator misses this deadline, the appeal could be dismissed.

Read more: How To Buy XRP and Everything You Need To Know

While Bitwise updates its XRP ETF submission, the crypto index fund manager is also making strides with its Bitcoin ETF. The firm’s Bitcoin ETF has exceeded $5 billion in AUM, marking significant progress. This milestone applies across its range of beta and alpha investment products, showcasing strong investor interest and growth in its Bitcoin offerings.

Bitwise indicated that this represents a 400% surge in 2024. It ascribes the traction to existing and new investors and comes after Luis Berruga’s ascension as the company’s strategic advisor.

“This year, investors have trusted Bitwise to manage billions of dollars of investments in Bitcoin and crypto,” Bitwise CEO Hunter Horsley said.

Optimists predict even more growth for Bitwise, with some forecasting its Bitcoin ETF could reach $20 billion in AUM by 2026. This comes after the firm achieved several key milestones in 2024, further cementing its position in the crypto investment space.