Bittensor [TAO] briefly surpassed $205 on August 12 before pulling back towards $200, continuing its recovery from the August lows without confirming a breakout.
The increasing futures open interest nearing $300m suggests traders are building positions, although capital outflow and a weak trend indicate that the move lacks strong conviction and has yet to broaden.
Challenges for TAO Crypto Above $200
TAO was priced around $199.65, down 0.95% after peaking at $205.56 earlier in the day.
Although the daily rally briefly pushed the price above $203.75, it couldn’t sustain that level. Despite the subsequent drop, TAO remained above $195.01, keeping the recovery intact for now.
Buyers need a daily close above the $204–$206 range to target $220 as the next resistance level.
Below the current price, support at $195 is crucial. Falling below that level would push TAO below the middle Bollinger Band, with the lower band at $186.27 becoming the next support.
Other indicators present a mixed picture, with the Chaikin Money Flow [CMF] at -0.06, indicating slightly negative capital flows.
The Average Directional Index [ADX] at 19.40 suggests a limited trend strength, as readings in the 20s and 30s typically indicate a more established trend.
Bittensor Open Interest Approaches $300M
Data from CoinGlass indicates TAO futures open interest is nearing $300 million as of August 12.
Increasing open interest signals traders are adding positions, but the predominant bullish or bearish sentiment is unclear.
The open-interest-weighted funding rate for TAO is close to 0.006%, suggesting long-position holders are paying shorts, potentially leading to a sharper move. Resistance lies at $220, while support is at $186.
Key Takeaways
- TAO briefly breached $205, but with weak CMF and ADX below 20, the breakout remains unconfirmed.
- Open interest nearing $300 million raises the potential for a significant move once TAO moves beyond the $195–$205 range.