TAO Token Price May Fall Despite Trending on CoinGecko

Taostats data shows that Bittensor's TAO token has been trending on CoinGecko, reaching position seven in the market's top trending tokens. This surge in popularity led to a spike in real-time transaction volume, with over 100 TAO tokens traded at a time.

Liquidity levels suggest that TAO may be more likely to fall, with heavier liquidity stacked between $220 and $255, while the closest downside cluster was between $185 and $190. However, some of the heavier shorts have since been closed, with the concentration now between $195 and $205.

The altcoin's price action has been forming a base above the $180-$185 zone, similar to its historical performance in early June which resulted in a 59% upside rally. However, the Open Interest (OI) has been falling but flattened at around $127 million, hinting at a lack of enough buying power.

A resurgence in the price of Bitcoin would benefit TAO, especially since their correlation coefficient has risen to 0.89. Otherwise, TAO remains more likely to break lower than a bullish rebound.