Bittensor (TAO) Soars 14%, Reclaims $600 Mark This Monday

• On Monday, Bittensor’s native token TAO reclaimed the $600 level.
• The price of the digital asset soared by more than 14%, reaching a peak of $608.41 within the last 24 hours.
• During this time, its trading volume significantly surged by over 128%.

Bittensor (TAO) Performance

Bittensor (TAO) surged past the $600 mark this Monday, igniting enthusiasm in the cryptocurrency community ahead of the highly-anticipated Uptober event. The AI-related token skyrocketed from a low of $531.70 to a high of $608.41 in the past day, reflecting over a 14% upside volatility for the digital asset.

As of 1:00 PM (UTC), Bittensor secured a one-day gain of 12%, trading around the $598 range. Simultaneously, the token saw a trading volume increase of 128%, with over $255.54 million of its supply exchanging hands among crypto wallet addresses. This indicates a rise in investor interest in TAO during this timeframe.

The recent exchange rate boosted the market capitalization of the 7.38 million TAO in circulation to $4.41 billion. However, considering Bittensor’s maximum token supply of 21 million, akin to that of Bitcoin (BTC), the fully diluted market cap now stands at $12.55 billion.

Bittensor is still approximately 22% down from its all-time high of $767.68 recorded six months ago. Will the current bullish sentiment be sufficient to drive it to new heights?

The Reason for the Price Action

Bittensor has recently been labeled as “Bitcoin on steroids,” and there’s merit to that description. Firstly, its Proof-of-Intelligence protocol showcases the best attributes of both Proof-of-Work (PoW) and Proof-of-Stake (PoS) systems. Secondly, its deflationary nature is secured through its halving process occurring every four years.

Given these similarities, it has a strong tendency to benefit from positive movements in BTC. Recently, Bitcoin touched the $66K range once more, which further bolstered TAO’s value.

Prominent crypto investor Jeff Sekinger observed an intriguing pattern that likely contributed to the rise in Bittensor’s price. The crypto veteran remarked, “TAO has just initiated its major move.”

Sekinger elaborated that every time TAO entered the overbought territory on the three-day relative strength index (RSI) chart, it typically climbed by triple digits. He recalled that when he first noted this trend, TAO spiked 382% as the three-day RSI exceeded 70. A subsequent occurrence led to a 115% surge under similar conditions.

It remains uncertain whether this pattern will persist given the current readings.