TAO up 106% in 30 days, analysts expect rally to continue

Bittensor, an artificial intelligence-focused token, ranked third among the 100 highest-earning cryptocurrencies in the last 30 days, after Neiro and Sui.

Bittensor (TAO) increased by 106.8% in the last 30 days. TAO is up 181% from its lowest point in September, pushing its market cap to over $4.79 billion. The altcoin was changing hands at $649 at the time of writing.

TAO’s rise can be partially attributed to Nvidia Corp’s shares, which are up 15.4% over the past 30 days, closing at $134.80 on Oct. 13. This increase brought Nvidia’s market value to $3.31 trillion, according to MarketWatch.

While Nvidia shares have gained 179.8% so far this year, this momentum has also lifted TAO and other AI-focused cryptocurrencies, pushing the value of the AI ​​cryptocurrency market up 1.6% in the last 24 hours. According to CoinGecko, the total market cap of AI tokens currently stands at $29.8 billion.

Corporate interest also played an important role in the rise of TAO. Grayscale, a major digital asset manager, recently launched a Bittensor-focused fund and raised $4.9 million in assets under management. Grayscale’s decision to increase its stake in Bittensor’s AI fund from 2% to 31% further boosted investors’ confidence and led to greater adoption and investment in TAO.

Bittensor’s demand on the futures market also increased, reaching a record high of $220 million on October 14, from a September low of $46.8 million. Increasing open positions is a sign of increasing demand among traders and investors.

On-chain metrics show that the Bittensor network has also witnessed an increase in activity; While active accounts increased from 127,000 seen at the end of September to 134,000, total TAO tokens staking by holders exceeded 5.9 million tokens.

According to some analysts, the rise in TAO is expected to continue. In a post on X, an analyst predicted that the short-term target for the token would be $1,000 and the medium-term target would be $3,330, citing strong technical indicators.

Meanwhile, trader XO observed that TAO is trading in an upward channel and noted that if it continues to follow this path, there could be a breakout near the $768 – $780 resistance zone. However, the analyst warned that the mid-$650 level acts as important support; A fall in price below this point could invalidate the uptrend and signal a potential downward shift in momentum.

TAO price, 50-day EMA and RSI chart — October 14 | Source: crypto.news

On the 1-day price chart, TAO is currently positioned above the 50-day Moving Average, indicating a bullish trend and the potential for the bullish momentum to continue. The Relative Strength Index has recently pulled back from overbought levels but remains stable above 60, indicating that the bulls are still in control of the price action. Currently at 65, the RSI suggests there is room for further gains in the short term before moving closer to the overbought zone again, which could potentially lead to a trend reversal.