Bittensor (TAO) Breaks Out Toward $600, but an 80% Long Bias Stands in the Way
Bittensor (TAO) broke out from a cup and handle pattern, but high long leverage and a bearish RSI divergence pose risks to its rally toward $600.Summary
Bittensor (TAO) price has surged over 10% in 24 hours, extending a breakout from a daily cup and handle pattern, supported by fading selling pressure and increased social engagement, which has driven subnet staking up significantly.
Technically, the move was confirmed by a 20-day EMA crossing above the 50-day EMA, and a bullish crossover with the 200-day EMA is approaching. However, derivatives data shows that approximately 80% of total leverage is currently on the long side ($20.76 million vs. $5.36 million in shorts), making the market vulnerable to a liquidation cascade if the price drops.
Furthermore, the 8-hour chart shows a bearish divergence between price (making higher highs) and the RSI (making lower highs), suggesting weakening momentum. The critical decision zone is $346; closing above this level maintains the bullish structure toward targets like $364, $428, $532, and eventually $600. A failure here could confirm the divergence and lead to a correction toward the $310 support zone.
(Source：BeInCrypto)