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Bittensor (TAO) Down After Network Attack: Crypto Analysis July 4, 2024
While Bittensor price has been under selling pressure for several months, TAO price continues to fall following an exploited vulnerability on its network. Let’s take a look at the future prospects of Crypto AI price.
Bittensor Situation (TAO)
After reaching an all-time high of $760, TAO price faced selling pressure, pushing its value back to the $240 zone. This pressure was fueled by the overall decline of the cryptocurrency market. Recently, Bittensor suffered an attack on its networknatural cause FUD on the price of TAO. Then, the cryptocurrency continued its decline, falling below $230. All these fluctuations then led to a decline of more than 70%.
As I write these lines, Bittensor price is trading around $220. This price level seems to be a major daily support for the cryptocurrency. Therefore, a renewed interest in preserving it is desirable. Bittensor’s trend still seems bullish according to Dow theory. However, the cryptocurrency is now below its 50-day and 200-day moving averages. This naturally raises doubts about Bittensor’s current trend. From a dynamic point of view, it is not surprising to see it revised lower as shown by the cryptocurrency’s price. This obviously does not support the buyers’ camp. However, it can be seen that the oscillators seem to be stabilizing, suggesting a decrease in selling pressure and offering a glimmer of hope for an imminent capitulation.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today’s trainer at Family businessa community of thousands of autonomous traders active since 2017. There you will find Live, educational content and support on the financial markets in a professional and friendly atmosphere.
Focus on Derivatives (TAO/USDT)
As the open interest on TAO/USDT perpetual contracts diverged from its price, it unfortunately ended up dropping significantly during the TAO decline on June 24. This decline was accompanied by significant long liquidations, amounting to around $60,000. It can also be noted that it was at this point that the TAO/USDT funding rate dropped significantly. Since then, the open interest of perpetual contracts associated with Bittensor has continued to decline, following the price of its underlying asset. All this information allows us to interpret that the buyers have capitulated.
Bittensor’s liquidation heat map over the past month shows that TAO has recently broken a significant liquidation zone. This was around $370. While this phenomenon seemed to have triggered initial interest from buyers, it was not sustained, allowing TAO’s price to continue its decline. Currently, the most obvious liquidation zones are located above the current price of the AI cryptocurrency. We can note the recent $250 zone, the $325 zone, and finally the most obvious, the one around $450. If the price approaches these levels, it could trigger a huge order volume, thus increasing the likelihood of a period of high volatility for Bittensor. These zones therefore represent important points of interest for investors.
Bittensor (TAO) Price Hypothesis
- If Bittensor price holds above $190, we can expect a continuation of the uptrend up to $300. If this level is broken, the next bullish target could be the $350 mark, or even $450. Higher up, we can see the $550 mark. At this point, it would represent an increase of more than 146%.
- If Bittensor price fails to sustain above $190, we can expect a pullback to around $160. In case of continued downside movement, the next potential support level would be around $130. At this level, the decline would represent around 42%.
The price of TAO has been under significant selling pressure following various events, leading to a significant decrease in its value. Currently, the price is stabilizing around an important support level. Therefore, the main challenge is to stay above this level to avoid triggering further pessimism about the future of the AI cryptocurrency price. It will be essential to closely monitor the price reaction to key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.
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