Bittensor (TAO) Price Jumps 106% In Seven Days, But Will The Rally Continue?
Bittensor (TAO) witnessed a price surge, with the TAO token rallying 106% over the past seven days. Major developments within the decentralized AI protocol helped fuel the token’s gains.
Key factors include the Opentensor Foundation’s introduction of smart contracts and TAO’s listing on OKX’s perpetual futures market. Moreover, Vice President Kamala Harris’s positive remarks on AI and crypto added momentum to TAO’s price action.
Bullish Case for TAO: Strong Growth, but Risks Remain
Bittensor’s recent performance suggests robust investor enthusiasm, driven by technological advancements and broader market sentiment favoring AI and crypto. The introduction of smart contracts on Sept. 15 marked a key moment as it expanded TAO’s utility within the ecosystem.
OKX listed TAO futures contracts.
Investors have responded positively, pushing the token’s price up by the recent rally in the TAO USD pair. In addition, TAO’s listing on OKX’s perpetual futures market provides increased exposure and liquidity, with leverage options of up to 50x, which could attract retail and institutional traders.
VP Kamala Harris’s statements helped buoy TAO prices.
Vice President Kamala Harris’s supportive stance on AI and digital assets fueled the bullish sentiment. Her emphasis on fostering innovation while protecting consumers resonated with crypto markets, leading to further gains in tokens like TAO. Aligning her policies with crypto’s growth potential creates a broader environment of optimism.
Despite the overwhelmingly positive signals, it’s important to recognize the potential for a short-term correction. TAO’s sharp price increase could prompt profit-taking among traders, especially given the volatile nature of the crypto market.
Additionally, regulatory clarity and macroeconomic conditions could influence future movements. Therefore, while the bullish case for Bittensor remains compelling, investors should remain cautious of near-term volatility.
TAO Price Faces Correction Risks
After the Bittensor token’s value more than doubled over the last seven days, the TAO USD pair faces risks from its overbought RSI.
TAOUSD daily price chart with RSI. Source: Tradingview
The RSI on the Bittensor (TAO) chart stands at 82.68, well into the overbought zone, which increases the probability of a price reversal. An RSI above 70 suggests overbuying, and when it reaches above 80, it heightens the risk of a near-term correction.
The overbought condition indicates that upward momentum may be overextended, leading to traders’ potential profit-taking, which can result in a pullback or consolidation.
If TAO price drops from here, the next support level for the token is near the $454 price mark. Moreover, failure of the immediate support level might force the TAO USD pair to test the support near $378 before recovering.
On the other hand, a continued rally would result in the TAO price facing resistance near the $611 and $754 price levels.
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