Bittensor tops crypto charts as AI tokens ride Nvidia wave

Decentralized artificial intelligence project Bittensor has jumped to the top of the weekly gainers list, riding the wave of Nvidia’s stock rally.

Bittensor (TAO) has topped the charts this week as the biggest gainer among the top 100 cryptocurrencies with a solid 31% price increase. At press time, TAO was ranked 41st with a market cap of over $2.51 billion and its price was trading at $313.59, up 8.87% in the last 24 hours.

TAO’s recent surge came as Nvidia Corp. shares rose 13.5% to close at $119.08 on Sept. 13. That surge took Nvidia’s market value to $2.92 trillion, according to MarketWatch.

Nvidia shares have surged 140.5% so far this year, with momentum lifting TAO and other AI-focused cryptocurrencies along with it, pushing the AI-crypto market cap up 0.8% in the past 24 hours. According to CoinGecko, the total market cap of AI tokens has now reached $23.9 billion.

AI tokens often move in tandem with Nvidia’s stock. On September 4, tokens like the Alliance for Artificial Superintelligence (FET) and Render (RNDR) suffered double-digit losses following a 9.5% drop in Nvidia’s stock. In February, these tokens rebounded on the back of Nvidia’s strong Q4 2023 earnings, and similar buzz has built ahead of its Q2 2024 report.

TAO ready for takeoff TAO 1D price, MACD and RSI chart – September 14 | Source: crypto.news

The 1D TAO/USD price chart dated September 14 is indicating a strong uptrend and suggests the potential for an upward move.

The Moving Average Convergence Divergence has crossed above the signal line and the histogram is displaying longer green bars, both positive signs of upward momentum.

Moreover, the Relative Strength Index currently stands at 59, which suggests that the asset is in a healthy trading zone, still far from overbought levels.

This provides room for potential growth without concerns of a pullback due to overvaluation and paints a bullish outlook for the token’s short-term price trend, with further gains expected in the short term.

Market watchers at X echo a similar bullish sentiment. TAO is currently trading between $268 and $357, according to analyst Marco Polo. He expects a strong upward move once TAO breaks the $357 mark.

Meanwhile, analyst Ramon shares a similarly bullish outlook but identifies a key resistance slightly higher around $400.

Ramon predicts that TAO could reach the $3,000 to $5,000 range this bull run, depending on the strength of the liquidity coming out of Bitcoin and the general AI narrative, which has been further strengthened by recent developments such as Apple announcing its generative AI at the iPhone 16 event.