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

Bittensor (TAO) Surges 106.8% in 30 Days, Making It the Third-Top Gainer Among Top 100 Cryptocurrencies

Bittensor (TAO), an AI-focused cryptocurrency, has emerged as the third-largest gainer among the top 100 cryptocurrencies in the past 30 days, following Neiro and Sui. TAO surged by an impressive 106.8% over the last month, bringing its market capitalization to $4.79 billion. As of the latest data, TAO is trading at $649, up 181% from its lowest point in September.

Nvidia’s Rally Boosts TAO

TAO’s remarkable rise can be partly attributed to Nvidia’s stock surge. The tech giant saw its stock climb by 15.4% over the past 30 days, closing at $134.80 on October 13. This rally helped boost Nvidia’s market cap to an astonishing $3.31 trillion, according to MarketWatch. Nvidia’s stock has skyrocketed by 179.8% in 2024, and this momentum has also benefited other AI-driven cryptocurrencies like TAO. As a result, the AI-crypto market cap has risen by 1.6% in the last 24 hours, reaching a total of $29.8 billion.

Institutional Support Fuels Growth

In addition to Nvidia’s performance, institutional interest has also been a key driver behind TAO’s rise. Grayscale, one of the leading digital asset managers, recently launched a Bittensor-focused fund, drawing in $4.9 million in assets under management. Grayscale’s decision to increase its Bittensor allocation from 2% to 31% in its AI fund has further bolstered investor confidence and attracted more attention to TAO.

Futures Market Surge and On-Chain Activity

The demand for Bittensor in the futures market has also hit new highs. As of October 14, futures open interest for TAO reached a record $220 million, a sharp increase from $46.8 million in September. This spike in open interest reflects growing demand among both traders and investors.

On-chain metrics also show increased network activity, with active accounts rising to 134,000, up from 127,000 at the end of September. Additionally, the total amount of TAO staked by holders has surpassed 5.9 million tokens, indicating strong investor participation and confidence in the project.

Analysts Predict Further Gains

Some analysts believe that TAO’s rally could continue. In a post on X (formerly Twitter), one analyst set a short-term target of $1,000 and a mid-term target of $3,330 for the token, citing positive technical indicators.

Meanwhile, pseudonymous trader XO observed that TAO is trading within an upward channel and suggested that if the coin continues on this trajectory, a breakout could occur near the $768 – $780 resistance level. However, the analyst warned that the $650 level is a key support zone. A drop below this level could signal a potential shift in momentum, invalidating the bullish setup.

On the 1-day price chart, TAO is currently trading above the 50-day Moving Average, signaling a bullish trend and the possibility of continued upward momentum. The Relative Strength Index (RSI) recently pulled back from overbought levels but remains strong, holding above 60. This suggests that bulls are still in control of the price action. Currently at 65, the RSI indicates there is still potential for further gains in the short term before approaching overbought territory, which could signal the onset of a trend reversal.