The decentralized AI initiative Bittensor has surged to prominence among the weekly gainers, benefiting from the rise in Nvidia’s stock.
Bittensor (TAO) emerged as the leading gainer this week among the top 100 cryptocurrencies, achieving an impressive 31% increase in price. As of this writing, TAO occupies the 41st position by market capitalization, exceeding $2.51 billion, with its price climbing 8.87% in the past 24 hours, currently trading at $313.59.
The recent ascent of TAO is largely attributed to Nvidia Corp’s stock, which experienced a rally of 13.5%, closing at $119.08 on September 13. This boost elevated Nvidia’s market capitalization to an astounding $2.92 trillion, as reported by MarketWatch.
With Nvidia’s stocks up 140.5% this year to date, this momentum has positively impacted TAO and other cryptocurrencies centered around AI, resulting in a 0.8% increase in the AI-crypto market cap over the last 24 hours. As per CoinGecko, the aggregate market cap for AI tokens has now reached $23.9 billion.
Typically, AI tokens show a correlated movement with Nvidia’s stock. On September 4, assets such as Artificial Superintelligence Alliance (FET) and Render (RNDR) recorded double-digit declines following a 9.5% drop in Nvidia’s stock. Earlier in February, these tokens surged after Nvidia’s impressive Q4 2023 earnings announcement, with a similar excitement building ahead of its Q2 2024 earnings report.
TAO set for takeoff
The 1D TAO/USD price chart as of September 14 indicates a robust bullish trend, pointing to potential upward movement.
The Moving Average Convergence Divergence (MACD) has crossed above its signal line, exhibiting longer green bars on the histogram—both encouraging indicators for upward momentum.
Additionally, the Relative Strength Index (RSI) currently sits at 59, suggesting that the asset remains in a stable trading range, still distant from overbought conditions.
This scenario offers room for further growth without immediate risks of a pullback due to overvaluation, presenting a positive outlook for the token’s short-term price movement, with additional gains anticipated shortly.
Market analysts on X are reflecting a similar optimistic sentiment. According to analyst Marco Polo, TAO is currently fluctuating between $268 and $357. He foresees a significant upward movement once TAO surpasses the $357 threshold.
Conversely, analyst Ramon also shares an optimistic perspective but notes a slightly higher pivotal resistance at around the $400 mark.
Ramon anticipates that TAO might reach between $3,000 to $5,000 during this bullish cycle, contingent upon liquidity flowing out of Bitcoin and the robustness of the overall AI narrative, which has gained additional momentum following Apple’s announcement of its generative AI features at the iPhone 16 event.
