TAO's growth stands out among market leaders
#bittensor (#TAO🔥🔥🔥🔥 ), a token focused on artificial intelligence, has seen a 106.8% rise over the past 30 days, ranking third among the top 100 #Cryptocurrencies , following Neir and Sui. From its lowest point in September, TAO has surged by 181%, raising its market capitalization to over $4.79 billion. At the time of writing, it was trading at $649.
Nvidia as a growth catalyst
Part of TAO's growth can be attributed to the increase in Nvidia Corp's shares, which rose by 15.4% over the past 30 days. Nvidia closed at $134.80 on October 13, pushing its market capitalization to an astounding $3.31 trillion. Nvidia's 179.8% rise this year has positively influenced not only TAO but also other AI-focused cryptocurrencies. As a result, the market capitalization of AI-related cryptos has risen by 1.6% over the past 24 hours to $29.8 billion, according to CoinGecko data.
Institutional interest strengthens confidence in TAO
Institutional interest has played a significant role in TAO's rise. Digital asset manager Grayscale recently launched a fund focused on Bittensor, which attracted $4.9 million in managed assets. Grayscale also increased Bittensor's allocation in its AI fund from 2% to 31%, boosting investor confidence and driving more adoption and investment into TAO.
Rising demand in the futures market
Demand for TAO in the futures market surged, reaching an all-time high of $220 million on October 14. This marks a sharp increase from the September low of $46.8 million. This growing open interest signals heightened demand among traders and investors.
Increased activity on the Bittensor network
On-chain metrics show that the Bittensor network has also seen increased activity. The number of active accounts has grown from 127,000 in September to 134,000 currently, while the total TAO staked by holders has exceeded 5.9 million tokens.
Analysts predict continued growth
Analysts believe TAO's rally will continue. One analyst on platform X predicted a short-term target of $1,000 and a medium-term target of $3,330 for the token, citing strong technical indicators. Pseudonymous trader XO also noted that TAO is trading within a rising channel and, if it continues on this path, could break through resistance around the $768 to $780 range.
Key support and technical indicators
XO, however, cautioned that the $650 level serves as key support. If the price falls below this level, it could invalidate the bullish setup and signal a potential downward shift in momentum. On the 1-day chart, TAO remains above the 50-day moving average, indicating a bullish trend and the potential for continued upward momentum. The Relative Strength Index (#RSI ) recently pulled back from overbought levels but remains stable above 60, suggesting that bulls still control the price action. Currently, with the RSI at 65, there is room for more short-term gains before approaching overbought territory, which could potentially trigger a trend reversal.
TAO is thus in a strong growth phase, and analysts expect it to continue for some time, provided there is no significant change in market dynamics.
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