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Decentralized blockchain network Bittensor and its native token, TAO, have shown significant upside momentum over the past month, consistently outperforming major cryptocurrencies like Bitcoin and Ethereum across all time frames.
Designed for decentralized finance (DeFi) applications, TAO has surpassed the $400 mark, posting nearly 45% gains in the last month alone and an impressive 695% increase since the beginning of the year.
Analysts are optimistic about the token’s future potential, especially considering TAO hit an all-time high of $757 earlier this year. Many market experts believe that TAO could approach this price level again before the end of the year.
Keys Behind the Bittensor Price Rally
Technical analyst Altcoin Miyagi commented on the recent price action: noticing that Bittensor has quickly moved past the liquidity zones and is approaching a key target of $450. He expects a short correction and some volatility before the price continues its rise towards $600.
Miyagi also highlights the impending “artificial intelligence (AI) season,” which he believes will increase investor interest in TAO and drive price appreciation. This optimism is rooted in Bittensor’s goal of decentralized development AI production.
According to 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.
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Analyst Dread Bongo supports this optimistic outlook and highlights the transformative impact of AI on various industries, noting that the pace of change is accelerating rapidly.
The analyst quotes innovations from both AI startups and established companies, 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 strengthening AI infrastructure.
Bongo believes that the AI sectorcurrently ranked at number 30 on CoinGecko, it is significantly undervalued and primed for growth. He predicts that AI within the cryptocurrency space will rival established categories such as Layer 1 protocols, smart contracts and stablecoins.
Against this backdrop, Bongo argues that TAO is well positioned to capture a significant share of the artificial intelligence market, paving the way for potentially substantial future gains.
Analysts have a target of $1,000 in mind for TAO
Currently trading at $415, BAO has experienced an increase of over 43% in the last seven days and a 10% increase in the last 24 hours. Despite this performance, the token remains about 45% below its all-time high in April.
Market analyst Crypto Pirates has done that noted that TAO recently broke a 100-day consolidation period following its recent correction. After its peak, the token experienced a drastic decline, losing more than 80% of its value and plummeting to a low of $163 during the broader market crash on August 5.
However, according to Crypto Pirates, this ongoing breakout could mark the start of a major upward move for the TAO token.
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Adding to the bullish sentiment, analyst EyeofCyber has expressed confident 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 increases. 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 of DALL-E, chart from TradingView.com
