Is Bittensor Headed for a Crash?

Is Bittensor Headed for a Crash?

The growing AI crypto project Bittensor has experienced a significant drop in its token, TAO, with a decrease of 17% in the past 24 hours. This has sparked panic among TAO holders who are now questioning whether Bittensor is on the verge of crashing. In order to assess the current price trends of TAO and explore alternative investment opportunities, let’s delve into a comprehensive TAO price analysis.

The plummet in TAO price occurred amidst substantial growth within the Bittensor ecosystem. The trigger for this downside movement can be attributed to a recoil from Bittensor’s impressive milestone of $500 million total value-locked, which was achieved earlier in the week. However, some market participants view this as a healthy correction rather than a reason to panic. In fact, a large Bittensor whale unloading TAO tokens has created an opportunity for others to buy at a discounted price. In the last 36 hours, over 40 more TAO tokens have been added, showcasing positive sentiment among the community.

Bittensor Token’s Current Status

Despite the recent drop in price, TAO traders remain optimistic about its future. Currently, TAO is trading at a market price of $443, reflecting a 24-hour change of -1.43%. The downside movement has been dominant on the TAO chart for the past 48 hours due to a rejection from the upside resistance at a local high of $521. However, the bullish technical structure of TAO remains intact, presenting an opportunity for bulls to form a double-bottomed support pattern above $415. Furthermore, the 20DMA (20-day moving average) is providing consistent lower support at $377.5, indicating a potential bullish swing in the short-term.

Technical Indicators and Analysis

While the 20DMA suggests an upward movement in TAO price, conflicting signals emerge from other technical indicators. The RSI (Relative Strength Index) displays a bearish overbought signal at 63.3, implying that a deeper and longer retracement may be necessary. On the other hand, the MACD (Moving Average Convergence Divergence) showcases bullish momentum at 3.9. Overall, the analysis of TAO price highlights its bullish technical structure and sustained rally momentum, despite the RSI’s struggle to cool off.

Projected Price Targets

Looking forward, TAO has its sights set on a higher support level at $481, representing a potential increase of 9.8%. However, there is also a downside risk that could lead TAO price to plummet to a lower support level at $395, resulting in a possible decrease of 10.4%. Therefore, the current risk-reward ratio for Bittensor stands at 0.87, which is considered unfavorable for short-term entry and signals a potential need for further retracement.

While Bittensor is not expected to crash, the unappealing entry point on the short-term frame has diverted the attention of investors towards a more appealing alternative: Meme Kombat. This meme coin has gained viral popularity during its presale stage, attracting investors with its unique concept. Meme Kombat combines nostalgic gaming with GambleFi on a decentralized Web3 platform. The project offers an exciting arena where animated characters battle it out, and users can place bets on the outcomes to potentially reap attractive rewards. With 11 unique meme characters in Season 1 and plans for Season 2 in December 2023, Meme Kombat guarantees plenty of action.

What sets Meme Kombat apart is its commitment to transparency. The project’s decentralized nature ensures that outcomes are transparent yet unpredictable, adding to the excitement for participants. Meme Kombat is also undertaking a smart contract security audit, and the findings of this audit will be made public, demonstrating a level of trust and openness rarely seen in the industry. The founder and project lead, Matt Whiteman, brings credibility to the project with his role as COO of North Technologies and his extensive experience in process design. Additionally, the public profile of Whiteman and the project’s Amsterdam address instill further trust in an era where project anonymity is a concern.

While the recent drop in TAO price has caused concern among investors, the overall analysis suggests that Bittensor is not likely to crash. The bullish technical structure, sustained rally momentum, and ongoing support from the 20DMA indicate the potential for an upward swing in TAO price in the short-term. However, the unfavorable risk-reward ratio suggests a possible need for further retracement. Alternatively, the emergence of Meme Kombat as an enticing investment opportunity showcases its unique features and commitment to transparency and trust. Ultimately, investors should carefully evaluate their options and consider the high-risk nature of cryptocurrency investments before making any decisions.

Analysis

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