Important points
What caused Bitensol’s recent price to soar to a 10-month high?
The launch of Europe’s first staked TAO ETP has sparked new investor interest and capital inflows.
What do current market indicators suggest about TAO’s momentum?
A strong RSI and bullish futures data indicate that $590 will be the next resistance level and the upward momentum will continue.
After two weeks of trading in thin margins, Bittensall [TAO] The stock soared to a 10-month high of $539.
At the time of writing, Bitensor was trading at $528, up 23.62% in the past 24 hours. Over the same period, Aicoin’s trading volume increased by 109% to $950 million, indicating steady capital inflows.
But what is behind the rise of Tao today?
Bitensor ETP debuts in Europe
Bitensor rose following the debut of Europe’s first staked TAO exchange-traded product (ETP). According to a press release, Deutsche Digital Assets and Safero will list Bittensor Staked TAO (ETP) on six Swiss exchanges.
Physically, the product will be backed by TAO tokens stored in a regulated custodian’s cold storage. The fund will operate under the name Safello Bittensor Staked Tao and will provide direct exposure to investors.
Additionally, all investors enjoy a 10% annual yield, and their fees are automatically reinvested into the fund with fees of up to 1.49%.
Most importantly, ETP aims to bridge TradFi and decentralized AI, which will unlock European institutional capital.
Spot demand recovers
Importantly, buyers have returned to accumulate TAO after taking a step back from the market following the announcement of ETP debut by Deutsche Digital Asset.
According to Coinalyze, Bittensor recorded a positive market delta between October 31st and November 1st.
During this period, the altcoin’s buy volume was 400,000 while the sell volume was 359,000.
Source: CoinAnalyze
As a result, the altcoin recorded a positive buy-sell delta of 41,000, showing clear signs of aggressive spot accumulation.
Derivatives turn more bullish
Just as investors have flooded the spot market, they have also entered the futures market to position themselves strategically following recent developments.
At the time of writing, Bittensor’s derivative trading volume increased by 90.63% to $2.37 billion, and its open interest (OI) increased by 64.8% to $446.28 million, according to CoinGlass data.
Source: Coin Glass
Typically, when OI and trading volume increase in parallel, it indicates increased participation and stable capital flows.
In fact, inflows into futures surged to $678 million, while outflows fell to $649.5 million. As a result, forward net flows increased by 172.16% to $28.53 million, indicating huge capital inflows.
Source: Coin Glass
Meanwhile, altcoin’s long-short ratio rose to 1.038, and Binance’s top trader ratio reached 1.5, indicating rising long demand.
Often, when longs prevail, it indicates that most participants are bullish and expect the price to continue rising.
Profit takers also participate
As expected, after Bittensall rose to January levels, investors who had been holding it behind the scenes rushed to cash out.
According to CoinGlass, the altcoin recorded positive spot netflow from October 31st to November 1st.
Source: Coin Glass
At the time of writing, net flow was $7.05 million, down from $18.12 million the previous day, indicating a sharp increase in profit-taking.
Historically, increases in profit realization have preceded declines in prices when demand cannot keep up.
Can we keep this momentum going?
According to AMBCrypto, Bitensor rebounded 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) has soared to 70, indicating a growing buyer advantage. Similarly, the strength of the sequential pattern also jumped to 35, further confirming this bullish momentum.
Source: TradingView
When these indicators are configured this way, it suggests that the trend may continue. Therefore, if the current situation holds and the bulls continue to dominate, TAO’s uptrend will continue and $590 will be the next major resistance.
However, if profit-takers increase spending and overwhelm buyers, the market will correct and find support near $455.