Bittensor, a token focused on artificial intelligence, has experienced a significant surge in its value over the past 30 days, making it the third top gainer among the top 100 cryptocurrencies. TAO has seen a remarkable increase of 106.8% during this period and is now up 181% from its lowest point in September, with a market cap exceeding $4.79 billion. As of now, TAO is being traded at $649.
This surge in TAO’s value can be attributed in part to the impressive performance of Nvidia Corp’s stock, which has risen by 15.4% over the last 30 days, reaching $134.80 on Oct. 13 and boosting Nvidia’s market cap to $3.31 trillion. The strong momentum of Nvidia’s stocks, which have increased by 179.8% this year, has positively impacted TAO and other AI-focused cryptocurrencies, leading to a 1.6% rise in the AI-crypto market cap in the last 24 hours. The total market cap for AI tokens now stands at $29.8 billion, according to CoinGecko.
Institutional interest has also played a crucial role in TAO’s upward trajectory. Grayscale, a prominent digital asset manager, recently launched a fund focusing on Bittensor, attracting $4.9 million in assets under management. Furthermore, Grayscale’s decision to increase Bittensor’s allocation in its AI fund from 2% to 31% has bolstered investor confidence, attracting more adoption and investment into TAO.
The demand for Bittensor in the futures market has surged to a record high of $220 million on Oct. 14, up from $46.8 million in September. This increase in open interest indicates a growing demand among traders and investors. On-chain metrics also show a rise in activity within the Bittensor network, with active accounts increasing to 134,000 from 127,000 at the end of September, and the total TAO staked by holders surpassing 5.9 million tokens.
Analysts predict that TAO’s rally is likely to continue in the near future. One analyst has set a short-term target of $1,000 and a mid-term target of $3,330 for the token, citing strong technical indicators. Another trader noted that TAO is trading within an upward channel and could potentially break out around the $768 – $780 resistance zone. However, the $650 mid-level is seen as a crucial support level, and a drop below this point could invalidate the bullish setup, signaling a potential shift in momentum.
Looking at the 1-day price chart, TAO is currently positioned above the 50-day Moving Average, indicating a bullish trend and the possibility of further upward momentum. The Relative Strength Index (RSI) has pulled back from overbought levels but remains above 60, suggesting that bulls are still in control of the price action. With the RSI at 65, there is room for additional gains in the short term before potentially entering overbought territory, which could lead to a trend reversal.