Bittensor (TAO) Down After a Network Attack: Crypto Analysis of July 4, 2024

While the price of Bittensor has been under selling pressure for several months, the price of TAO continues to plunge following an exploited vulnerability on its network. Let’s examine together the future prospects of the Crypto AI price.

Situation of Bittensor (TAO)

After reaching an all-time high of $760, the price of TAO faced selling pressure, bringing its value back to the $240 zone. This pressure was fueled by the overall decline in the crypto market. Recently, Bittensor suffered an attack on its network, naturally causing FUD on the price of TAO. Thus, the cryptocurrency continued its decline, falling below $230. All of these fluctuations have therefore led to a drop of more than 70%.

At the time of writing these lines, the price of Bittensor is trading around $220. This price level seems to be an important daily support for the crypto. Thus, renewed interest is desired to preserve it. Bittensor’s trend still appears bullish according to Dow’s theory. However, the crypto is now below its 50 and 200-day moving averages. This naturally raises doubts about Bittensor’s current trend. On the dynamics side, it’s not surprising to see it being revised downward as shown by the crypto’s price. This obviously does not support the buyers’ camp. However, it can be seen that the oscillators seem to be stabilizing, suggesting a decline in selling pressure and offering a glimmer of hope for upcoming capitulation.

The current technical analysis was carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today trainer at Family Trading, a community of thousands of self-employed traders active since 2017. There you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

Focus on derivatives (TAO/USDT)

While 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 drop 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 significantly decreased. From that moment, the open interest of perpetual contracts associated with Bittensor continued its decline, following the price of its underlying asset. All of this information lets us interpret that buyers have capitulated.

The Bittensor liquidations heatmap over the last month shows that TAO recently exceeded a significant liquidation zone. This was around $370. While this phenomenon seemed to have triggered initial buyer interest, it was not sustained, allowing TAO’s price to continue its decline. Currently, the most apparent liquidation zones are located above the current AI crypto price. We can note the recent $250 zone, the $325 zone, and finally the most apparent, the one around $450. If the price approaches these levels, it could trigger a massive volume of orders, thereby increasing the likelihood of a period of heightened volatility for Bittensor. These zones thus represent major points of interest for investors.

Hypotheses for Bittensor (TAO) price

• If the price of Bittensor maintains above $190, we could anticipate a continuation of the bullish trend up to $300. If this level is broken, the next bullish target could be the $350 threshold, or even $450. Higher up, we can note the $550. At this stage, it would represent an increase of more than 146%.

• If the price of Bittensor fails to maintain above $190, we could envisage a retreat around $160. In case of continued downward movement, the next potential support level would be around $130. At this level, the decline would represent around 42%.

The TAO price has undergone significant selling pressure following various events, leading to a notable decrease in its value. Currently, the price is stabilizing around an important support level. Thus, the main challenge is to remain above this level to avoid triggering further pessimism about the future of the AI crypto price. It will be essential to closely monitor the price’s reaction to key levels to confirm or invalidate current hypotheses. It is also important to stay vigilant against potential “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.