Decentralized blockchain network Bittensor and its native token, TAO, have shown significant upward momentum over the past month, consistently outperforming major cryptocurrencies such as Bitcoin and Ethereum across all time frames.
Designed for decentralized finance (DeFi) applications, TAO has surged past the $400 mark, achieving nearly 45% gains in the last month alone and an impressive 695% increase year-to-date.
Analysts are optimistic about the token’s future potential, especially given that TAO reached an all-time high of $757 earlier this year. Many market experts believe that TAO could approach this price level again before the year ends.
Keys Behind The Bittensor Price Rally
Technical analyst Altcoin Miyagi has commented on the recent price action, noting that Bittensor has quickly moved past liquidity zones and is nearing a key target of $450. He anticipates a brief correction and some volatility before the price continues its ascent towards $600.
Miyagi also highlights the impending “artificial intelligence (AI) season,” which he believes will heighten investor interest in TAO and drive further price appreciation. This optimism is rooted in Bittensor’s goal to develop decentralized AI production.
According to Bittensor’s official website, TAO is the decentralized currency that powers the production of AI within subnets. These interconnected subnets facilitate profitable interactions, allowing different AI entities to share and enhance each other’s capabilities.
Supporting this bullish outlook, analyst Dread Bongo emphasizes the transformative impact of AI on various sectors, noting that the pace of change is accelerating rapidly.
The analyst cites innovations from AI startups and established companies alike, including the recent launch of a record-breaking $30 billion fund by asset manager and crypto exchange-traded fund (ETF) issuer BlackRock and Microsoft aimed at bolstering AI infrastructure.
Bongo believes that theAI sector, currently ranked #30 on CoinGecko, is significantly undervalued and poised for growth. He predicts that AI within the cryptocurrency space could rival established categories such as Layer 1 protocols, smart contracts, and stablecoins.
With this context, Bongo argues that TAO is well-positioned to capture a significant share of the artificial intelligence market, setting the stage for potentially substantial future gains.
Analysts Eye $1,000 Target For TAO
Currently trading at $415, TAOhas experienced a surge of over 43% in the past seven days and a 10% increase in the last 24 hours. Despite this performance, the token remains approximately 45% below its all-time high in April.
Market analyst Crypto Pirates has noted that TAO has recently broken out of a 100-day consolidation period following its recent correction. After peaking, the token experienced a drastic decline, losing over 80% of its value and plummeting to as low as $163 during the broader market crash on August 5.
However, according to Crypto Pirates, this ongoing breakout could signal the beginning of a major upward move for the TAO token.
Adding to the bullish sentiment, analyst EyeofCyber has expressed confidence that TAO could reach the $1,000 milestone as early as next week. He emphasizes that Bittensor is at the forefront of decentralized training, stating, “Everyone WANTS $TAO.”
Despite this optimism, market behavior often includes corrections after strong price advances. Pullbacks may occur in the coming days, making it crucial for TAO to hold lower support levels to maintain the current bullish trend and achieve further price gains.
Featured image from DALL-E, chart from TradingView.com