Bittensor’s native token, TAO, has emerged as a standout performer in the artificial intelligence sector, exhibiting a remarkable 180% increase in value during the first quarter of 2024. Despite this impressive growth, the token has recently experienced significant price corrections as it approached its all-time high. Currently, TAO is grappling with crucial resistance levels, leading to uncertainty among analysts regarding its short-term trajectory, although many remain optimistic for the future.
The recent downturn in TAO’s value follows a broader trend seen throughout the cryptocurrency market. After reaching the $300 level in July, the token encountered substantial resistance at the beginning of August, resulting in a drop below the $180 level. Yet, in the wake of a market recovery, TAO rallied by over 75% from its recent lows. It attempted to revisit the $300 resistance over the weekend but was unable to maintain that position, facing another setback this week.
Currently trading at $277, TAO has seen a 10% decline since its Friday price of $315. Analysts have expressed mixed sentiments, with one suggesting the possibility of an imminent drop of 25% to 30%. Concerns about the token’s bearish structure hint that it might soon breach the critical $200 support level. However, there are indications that TAO can be a frontrunner in the AI sector given the launch of the Grayscale Bittensor Trust, which could inject new capital into the market.
In terms of technical analysis, traders are observing a head and shoulders pattern on weekly charts, indicating potential trend reversals. However, as long as TAO remains above the $200 support zone, there seems to be a chance for recovery. The token is currently fluctuating within a defined range between $210 and $360, where it has previously established a foothold. For a bullish shift to occur, reaching and sustaining above the $310 level would be crucial. Failure to hold above the $200 level may lead to further declines, potentially revisiting lows around $160. Overall, the outlook remains cautiously optimistic, hinging on the token’s ability to break either the upper or lower boundaries of its current range.
