Key Takeaways
What triggered Bittensor’s recent price surge to a 10-month high?
The launch of Europe’s first staked TAO ETP sparked renewed investor interest and capital inflows.
What do current market indicators suggest about TAO’s momentum?
Strong RSI and bullish futures data point to continued upward momentum, with $590 as the next resistance.
After trading within a thin margin for two weeks, Bittensor [TAO] broke out and surged to a 10-month high of $539.
At press time, Bittensor was trading at $528, up 23.62% over the last 24 hours. Over the same window, Aicoin’s trading volume surged 109% to $950 million, indicating steady capital inflow.
But what’s behind Tao’s rally today?
Bittensor ETP debuts in Europe
Bittensor rallied after the debut of Europe’s first staked TAO exchange-traded product (ETP). According to a press release, Deutsche Digital Assets, together with Safello, will list Bittensor Staked TAO (ETP) on six Swiss Exchanges.
Physically, the product will be backed by TAO tokens held in cold storage with a regulated custodian. The fund will operate under the name Safello Bittensor Staked Tao, giving direct exposure to investors.
Additionally, all investors will enjoy a 10% annual yield, with rewards automatically reinvested into the fund at a maximum fee of 1.49%.
Most importantly, the ETP seeks to bridge TradFi with decentralized AI, thus unlocking European institutional capital.
Spot demand rebounds
Significantly, after taking a step back from the market, buyers returned to accumulate TAO following Deutsche Digital Asset’s announcement of the ETP’s debut.
According to Coinalyze, Bittensor recorded a positive market delta between the 31st of October and the 1st of November.
Over this period, the altcoin saw 400k in Buy Volume compared to 359k in Sell Volume.
Source: Coinalyze
As a result, the altcoin recorded a positive Buy Sell Delta of 41k, a clear sign of aggressive spot accumulation.
Derivatives turn more bullish
Just as investors rushed into the spot market, they also entered the futures market to position themselves strategically following recent developments.
According to CoinGlass data, Bittensor’s Derivatives volume surged 90.63% to $2.37 billion while Open Interest (OI) jumped 64.8% to $446.28 million, as of writing.
Source: Coinglass
Typically, when OI and volume rise in tandem, it signals increased participation and steady capital flow.
In fact, Futures inflows surged to $678 million, while outflows dropped to $649.5 million. As a result, Futures Netflow surged 172.16% to $28.53 million, indicating massive capital inflow.
Source: CoinGlass
Meanwhile, the altcoin’s Long Short Ratio rose to 1.038, with Binance’s top traders’ ratio hitting 1.5, indicating a higher demand for longs.
Often, when longs dominate, it indicates that most participants are bullish and expect prices to continue rising.
Profit takers also join the party
As expected, after Bittensor rallied to January levels, investors who have held underwater rushed to cash out.
According to CoinGlass, the altcoin recorded a positive Spot Netflow between the 31st of October and the 1st of November.
Source: CoinGlass
At press time, Netflow was $7.05 million, down from $18.12 million the previous day, indicating soaring profit-taking.
Historically, increased profit realization has preceded lower prices if demand failed to keep pace.
Can the momentum hold?
According to AMBCrypto, Bittensor rallied as demand surged across the market after the debut of Europe’s first TAO ETP.
At the time of writing, the altcoin’s Relative Strength Index (RSI) surged to 70, indicating rising buyer dominance. Likewise, its Sequential Pattern Strength jumped to 35, further validating this bullish momentum.
Source: TradingView
When these indicators are set this way, they suggest the potential for trend continuation. Therefore, if prevailing conditions hold and bulls continue to dominate, TAO’s uptrend will continue, with $590 as the next significant resistance.
However, if profit takers increase their spending, thus overwhelming buyers, the market will correct and find support around $455.
