Market
Bittensor (TAO) Futures Traders Bet Against Rally: Price Impact
TAO, the altcoin that powers Bittensor’s decentralized machine learning network, has witnessed a 36% price rally in the past 24 hours as the general cryptocurrency market rebounds following Monday’s decline.
This has led to an uptick in the token’s derivatives market activity. However, this is not without a catch.
Bittensor Futures Traders Bet Against a Price Rally
According to Coinglass, TAO’s derivatives market has recorded a 14% upswing in daily trading volume in the past 24 hours.
When an asset sees an increase in derivatives trading volume, it suggests a growing interest in the underlying asset. Since derivatives allow traders to speculate on price movements without owning the underlying asset, a spike in trading volume may suggest that more traders are engaging in speculative activities, which may drive up price volatility.
TAO’s rising open interest confirms this influx of new traders over the past 24 hours. According to Coinglass, the coin’s open interest has increased by 32% during that period, totaling $38.31 million.
Read More: Top 9 Safest Crypto Exchanges in 2024
An asset’s open interest refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. When it spikes like this, more traders are opening new positions in the market.
However, TAO’s negative funding rate signals that these new traders have mostly opened short positions. As of this writing, the token’s funding rate across cryptocurrency exchanges is -0.01%.
Funding rates are used in perpetual futures contracts to ensure an asset’s contract price stays close to its spot price. When they are negative, it means more traders are buying the asset, expecting a decline, than those buying in anticipation of a rally.
TAO Price Prediction: A Bullish Divergence Offers Hope
Readings from TAO’s one-day chart reveal that its double-digit price rally over the past 24 hours might not be sustainable. This is because the bearish bias toward the altcoin is still significant.
At press time, its Elder-Ray Index returns a negative value of -64.2. For context, this indicator has returned values below zero since July 30, and the recent price rally has not changed that.
An asset’s Elder-Ray Index measures the relationship between the strength of buyers and sellers in the market. When its value is negative, it means that bear power outweighs bullish presence.
If the bears remain in control and continue to put downward pressure on TAO, its price may fall below $200 to trade at $163.70.
However, the bullish divergence between TAO’s price and its Chaikin Money Flow (CMF) hints at the possibility of a rally. While TAO’s price has maintained a downtrend since July 28, its CMF has risen, creating a bullish divergence.
This divergence often signals a potential bullish reversal. While the price is declining, buying pressure is increasing, which could lead to a price uptrend.
Read More: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?
If this buying pressure gains momentum, it could push the token’s value to a two-month high of $419.80.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
XRP Price Ready to Rally? Signs Point to a Bullish Move
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Market
Solana (SOL) Rallies Strongly, Setting Sights on $200
Solana started a fresh increase above the $172 support zone. SOL price is rising and might soon aim for a move toward the $200 level.
- SOL price started a fresh increase after it settled above the $165 level against the US Dollar.
- The price is now trading above $172 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to rise if it clears the $192 resistance zone.
Solana Price Starts Fresh Rally
Solana price formed a support base and started a fresh increase above the $162 level like Bitcoin and Ethereum. There was a strong move above the $165 and $172 resistance levels.
There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair. The price even cleared the $185 level. A high is formed at $192 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $155 swing low to the $192 high.
Solana is now trading above $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $192 level. The next major resistance is near the $195 level.
The main resistance could be $200. A successful close above the $200 resistance level could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $220 level.
Another Dip in SOL?
If SOL fails to rise above the $192 resistance, it could start a downside correction. Initial support on the downside is near the $188 level. The first major support is near the $180 level.
A break below the $180 level might send the price toward the $172 zone or the 50% Fib retracement level of the upward move from the $155 swing low to the $192 high. If there is a close below the $172 support, the price could decline toward the $165 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $188 and $185.
Major Resistance Levels – $192 and $200.
Market
Will Bulls Push It Higher?
Ethereum price started a fresh surge above the $2,650 resistance. ETH is up over 10% and might aim for a move above the $2,850 resistance.
- Ethereum started a fresh surge above the $2,650 resistance zone.
- The price is trading above $2,700 and the 100-hourly Simple Moving Average.
- There is a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it settles above $2,850 and $2,880.
Ethereum Price Extends Surge
Ethereum price started a fresh increase above the $2,550 resistance like Bitcoin. ETH was able to climb above the $2,550 and $2,650 resistance levels to move into a positive zone.
It even surged above the $2,720 level in the past few sessions, beating BTC. It is up over 10% and there was a move above $2,800. A high is formed at $2,848 and the price is showing signs of more upsides. It is holding gains above the 23.6% Fib retracement level of the upward move from the $2,357 swing low to the $2,848 high.
Ethereum price is now trading above $2,700 and the 100-hourly Simple Moving Average. There is also a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the $2,850 level. The first major resistance is near the $2,880 level. The main resistance is now forming near $2,950. A clear move above the $2,950 resistance might send the price toward the $3,000 resistance.
An upside break above the $3,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,250 resistance zone.
Are Dips Supported In ETH?
If Ethereum fails to clear the $2,850 resistance, it could start a downside correction. Initial support on the downside is near the $2,800 level. The first major support sits near the $2,720 zone and the trend line.
A clear move below the $2,720 support might push the price toward $2,650. Any more losses might send the price toward the $2,550 support level in the near term. The next key support sits at $2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,850
Major Resistance Level – $2,720
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