Bitensor (TAO) price has risen nearly 14% in the past 24 hours, extending the weekly gain to about 40%. There is a clear pattern forming on the chart that, if confirmed, could push TAO price back towards the all-time highs it made last year.
However, there are serious risks lurking in the background. This flag could determine whether the flag actually takes off or whether it breaks before takeoff.
sponsored
Whales rebound as one index hits record high
On-chain data shows that whales still control the direction of TAO price.
Chaikin Money Flow (CMF), an indicator that tracks the flow of funds from large wallets, rose to 0.40, its highest level since TAO was listed on Binance.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Despite a brief decline on October 7th, CMF has been steadily rising since early September, indicating consistent whale inflows. Even during the market crash on October 10th, large holders continued to buy without exiting.
This marks the strongest spot accumulation phase since Bittensor’s debut. Whales seem unfazed by market noise, suggesting that the spot market is driven by belief rather than short-term speculation.
sponsored
Accumulation of leverage can destroy poles
While spot data is holding strong (thanks to major wallets), derivatives present the risk of derailing a bull market. Perpetual futures trading volume soared from $813 million on October 13 to more than $1.49 billion on October 14, an 83% increase in just one day. And most of the volume is long bets.
On Bitget alone, long positions totaled approximately $22.33 million and short positions totaled $9.06 million, creating a long bias of over 100%. This imbalance indicates that traders are betting heavily on the upside.
sponsored
The problem is that if the TAO price corrects even slightly, these leveraged longs could be liquidated (a long squeeze), causing a rapid decline.
This is a clear division. Whales are accumulating on the spot side, but with aggressive leverage, one sharp move can ruin that progress.
TAO price pattern faces breakout test
The 4-hour chart shows that the Bitensor price has formed a bullish flag, a brief consolidation after a strong rally. The poles reflect the recent uptrend, and the flag represents the current consolidation before a potential breakout. Based on Paul’s prediction, TAO price could reach $797 and surpass its all-time high.
sponsored
While the daily chart captures the broader price rally, the 4-hour chart highlights the more subtle structure of the flag, showing how momentum is cooling off after the pole and forming a tight consolidation that could quickly resolve in either direction.
TAO price is trading near $463 and is facing resistance at $469, a major flag breakout trigger. If it clears, the pattern predicts ~73% upside (as mentioned above) with open targets at $519, $665, and beyond the previous price peak of $757.
If the rally fails, $423 and $381 will act as support. A close below $381 invalidates the bullish flag and confirms that the pole broke before the breakout.
For now, Mr. Bittensor is at a critical juncture. Spot whales are buying, leveraged traders are flocking, and the $469 level will determine the winner.
