Bittensor (TAO) surged over 10% in the past day, reacting off a key support zone between $211.7 and $215.4. Chart analysis indicates the asset could replicate prior fractal patterns that historically yielded average gains of 25.33%. However, conflicting signals from the Money Flow Index and a negative Funding Rate suggest that demand has yet to fully confirm the rally. While spot netflows flipped positive, data indicates increasing distribution and short positions, leaving the potential for further gains toward the $250–$270 region uncertain.
Bittensor [TAO], the artificial intelligence-linked blockchain token, has recorded a significant price surge of more than 10% within the last 24 hours.
Chart analysis indicates that the price might extend these gains if it repeats patterns from previous fractal structures. TAO recently reacted off a crucial support level on the chart, positioned between $211.7 and $215.4.
This support zone has historically triggered major rallies on two separate occasions, with an average gain of 25.33%, according to data from TradingView. Before establishing this near-term gain, the price must overcome a resistance level between $231.1 and $232.7, where it has previously consolidated before an upswing.
If the momentum continues with strong demand, TAO could reclaim the $250 to $270 region on the chart.
Indicator analysis shows that demand for TAO has not yet provided a full bullish confirmation. The Bull Bear Power indicator, which measures market dominance, shows bulls are currently more prevalent, yet the histogram tracking this metric remains in the red, suggesting investors are still actively selling.
The Money Flow Index (MFI), which tracks capital inflow and outflow, has dropped to around 52.88 and is trending downward. Should the MFI fall below the 50 mark, it would confirm more selling pressure and a broader potential decline.
Spot Netflow data, measuring accumulation or distribution across exchanges, flipped positive in the past 24 hours with a netflow of $24,520. This marks a shift from the previous day’s highly negative reading.
The perpetual flow of capital also shows a negative Funding Rate of -0.0006%, indicating that investors currently hold more short positions than long positions.
These conflicting spot and perpetual flows suggest traders should exercise increased caution, as the data points to a higher risk of a price decline.
