BitTensor (TAO), a leading AI-focused cryptocurrency, is gaining momentum as the Web3 space evolves with blockchain technology. According to Coingecko, TAO recorded a 20.26% price increase in the last 24 hours, positioning it as the top performer among the top 50 cryptocurrencies by market cap at press time. TAO traded at $378.15 at press time, with a market cap of $2.8 billion and a 24-hour trading volume of $191.9 million.
TAO’s positive price action is part of a broader bullish trend in the AI sector, influenced by the growing integration of artificial intelligence within the tech industry.
Major companies like Nvidia have recently posted better-than-expected earnings, which have bolstered market sentiment towards AI-related assets, including cryptocurrencies like TAO.
TAO’s Technical Analysis and Resistance Levels
The daily chart for TAO/USDT reveals strong bullish momentum. The Bollinger Bands indicate increased volatility, with the price pushing against the upper band, reflecting strong buying pressure.
Moreover, the current price is significantly above the 20-day simple moving average (SMA) of $284.9, indicating a strong bullish sentiment.
However, the proximity to the upper Bollinger Band suggests that the market could be overextended, and a pullback or consolidation may occur if profit-taking increases.
Source: TradingView
The Aroon indicator further supports the bullish outlook, with the Aroon Up line at 100% and the Aroon Down line near 7.14%, signaling a dominant uptrend with minimal downside risk. This positioning suggests that buyers are firmly in control of the market, driving the price higher with little indication of a trend reversal at this point.
As of this writing, the Relative Strength Index (RSI) stands at 68.11, approaching the overbought zone, which points to strong buying momentum but also cautions of potential exhaustion if the uptrend continues without a pause.
Analyst’s View on TAO’s Potential Rally
Roman, a crypto analyst, highlighted the critical $400 resistance level as key to TAO’s potential rally. According to his analysis,
“$400 break & we can resume the move to $2-3k before next correction.”
Roman noted that TAO has repeatedly tested this level but has yet to secure a clear breakout, making it a major pivot point for future price action. The resistance zone has historically triggered multiple rejections, underlining its importance in TAO’s market dynamics.
Source: X
If TAO successfully breaks through the $400 barrier, Roman projects a sharp rally to the $2,000–$3,000 range, representing a potential 5x to 7.5x increase from the current price. This outlook hinges on the asset overcoming established resistance, which has been a significant challenge in recent sessions.
Roman’s analysis emphasizes that breaking this resistance could spark renewed interest in TAO, pushing it toward higher price targets.
Market Metrics Show Renewed Engagement
Recent data from Coinglass reflects growing market interest, with volume up 39.96% to $267.74 million and open interest rising 39.63% to $93.65 million. The increased open interest suggests that traders are positioning themselves in anticipation of future price movements, aligning closely with the recent price recovery.
Source: Coinglass
Historically, peaks and troughs in open interest have coincided with shifts in price, indicating that the current rise may be a precursor to further market activity.
TAO’s open interest had previously reached highs near $80 million in early June before declining as the price fell, reflecting a reduction in trader participation. The recent uptick in both price and open interest suggests a renewed market engagement, potentially driven by broader bullish sentiment in the AI sector.
The post BitTensor (TAO) Price Prediction September 19: TAO Surges 20%, Analyst Predicts $3K Rally if $400 Breaks appeared first on Coinfomania.
