Bittensor (TAO) To Lead The ‘AI Wave’: Analysts Bullish Despite 10% Price Drop

As a seasoned researcher with over two decades of experience in the tech and finance industries, I’ve witnessed countless market cycles and trends. The recent surge of Bittensor (TAO) has caught my attention due to its impressive performance this year. However, like any other investment, it’s essential to approach TAO with caution and a discerning eye.


As an analyst, I’ve noticed that Bittensor’s Token of Awesomeness (TAO) has been a standout performer among AI tokens this cycle, skyrocketing by an impressive 180% during Q1 of 2024. However, following its march to an all-time high (ATH), TAO has experienced a notable pullback and is now confronting crucial resistance levels.

Bittensor To Lead The ‘AI Wave’?

In simple terms, the value of Bittensor Protocol’s TAO token experienced a significant drop after the general market reversal in late July. Despite reaching the $300 mark earlier in July, the token took a substantial hit as August began. The price fall intensified on August 5, dipping below the $180 threshold.

After the crypto market bounced back, TAO‘s price skyrocketed by more than 75% since its lowest point on Monday. Over the weekend, the token attempted to break through the $300 resistance level, but was unable to maintain it as the market experienced another downturn on Monday.

The value of Bittensor’s internal currency decreased by 10% from its price on Friday ($315), causing some investors and market observers to question TAO‘s near future performance. Noted analyst Altcoin Sherpa predicts that the AI token could see another decrease of around 25%-30% in the coming time.

As an analyst, I’m pointing out that TAO‘s bearish market structure remains intact, potentially leading to another dip below the $200 support level in the near future. Furthermore, I find myself pondering if AI tokens like TAO might outshine the broader market as they did during early 2024.

Nonetheless, Gonzo, another market watcher, believes that the token will “lead the AI wave” in the coming months. Replying to Sherpa, the investor suggested that TAO might need to move sideways for a while and “hope that BTC doesn’t dump” to start a new uptrend.

Additionally, Gonzo notes that Grayscale could potentially sell off (dump) a large quantity to buy at a lower price initially, but subsequently boost (pump) the value to generate profits following the launch of their Bittensor fund. As per NewsBTC’s report, Grayscale Investments unveiled its new crypto venture, the Grayscale Bittensor Trust, last week.

No Clear Direction For TAO Short-Term

In simpler terms, Pidgeon, a cryptocurrency trader, examined TAO‘s long-term growth and found ambiguity in its shorter timeframes. According to the post, the chart reveals a “large reversal pattern” known as ‘head and shoulders’ when viewed weekly. To this analyst, this potential trend reversal is inconsequential as long as Bittensor maintains the $200 support level.

He believes that TAO‘s likelihood of maintaining its current level has significantly grown following “Monday’s significant fakeout and liquidity clean-up.” Furthermore, Pidgeon pointed out that the token is currently moving within a well-defined range between $210 and $360 on the daily chart, a range where TAO has previously shown signs of consolidation.

Bittensor (TAO) To Lead The ‘AI Wave’: Analysts Bullish Despite 10% Price Drop

The trader believes that the direction of the market may not change significantly until one side overcomes a certain point. For the Token Analysis and Outlook (TAO) to move out of its downward trend, it needs to surpass the $310 mark first, then challenge the $360 resistance level again. If TAO manages to breach the $360 trendline, its price might attempt to retest the $480 and $570 resistance levels before aiming for a new all-time high (ATH).

If the price doesn’t manage to stay above the $200 support level, there’s a possibility it could drop back down to around $160 or even reach as low as $90. However, he noted a pattern of lower highs that has persisted for months, which typically breaks towards an upward trend.

Essentially, the trader indicated that his outlook for the medium to long term is positive (bullish), but the actual direction will hinge on whether it breaks through its current trading range. Currently, TAO is being traded at $277, representing a 4% decrease in the last 24 hours.

Bittensor (TAO) To Lead The ‘AI Wave’: Analysts Bullish Despite 10% Price Drop

Read More

Sorry. No data so far.

2024-08-14 06:40