Bittensor (TAO) is showing clear signs of recovery after successfully holding above the $240 support level during Thursday’s trading session. The price action reflects a broader return of optimism across the AI-focused crypto sector, as investors cautiously reposition ahead of a key monetary policy decision from the U.S. Federal Reserve.
TAO’s ability to defend this support zone suggests that selling pressure has eased, while buyers are gradually regaining control amid improving market sentiment.
AI Crypto Sector Regains Momentum
Bittensor’s rebound is unfolding alongside a strong recovery across the wider AI token segment. According to market data, the total market capitalization of AI-related cryptocurrencies has climbed above $26 billion, signaling renewed capital inflows into the sector.
Growing participation from retail investors, combined with a more constructive risk environment, has helped restore confidence in AI-linked digital assets. Data from CoinGecko highlights several notable gainers over the past sessions:
BankrCoin (BNKR) surged more than 87% to around $0.005
Pippin (PIPPIN) jumped 57% to approximately $0.49
Kite (KITE) advanced nearly 20% to $0.15
tokenbot (CLANKER) rallied 37%, reaching roughly $36
These sharp moves suggest speculative interest is returning to AI tokens, particularly among smaller-cap projects, while larger names like Bittensor benefit from broader sector strength.
Derivatives Data Signals Rising Trader Confidence
Beyond the spot market, Bittensor’s derivatives metrics are also turning positive. Open interest (OI) in TAO futures increased to approximately $163 million on Thursday, up from $154 million the previous day.
The steady rise in open interest indicates that traders are adding new positions rather than closing existing ones, a sign of growing conviction that TAO’s recovery could extend in the near term. This trend suggests increasing participation from both speculative and directional traders positioning for continued upside.
Macro Backdrop Remains a Key Factor
Despite the improving technical and on-chain signals, market participants remain cautious ahead of the Federal Reserve’s upcoming policy decision. Macroeconomic uncertainty continues to influence risk assets, including cryptocurrencies.
For now, TAO’s resilience above key support levels and the broader revival in AI tokens point to renewed interest rather than a confirmed trend reversal. Sustained momentum will likely depend on macro clarity and whether capital continues flowing into the AI narrative.
Market Outlook
Bittensor’s recent price behavior, combined with rising derivatives activity and sector-wide strength, positions TAO as one of the AI tokens currently attracting attention from traders. Whether this recovery evolves into a sustained uptrend will depend on broader market conditions and continued investor appetite for AI-related assets.
Disclaimer:
This article is for informational purposes only and reflects personal commentary. It does not constitute investment advice. Cryptocurrency markets are highly volatile, and readers should conduct their own research before making any investment decisions. The author is not responsible for any financial outcomes.
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