TAO rises 5% as AI-focused tokens rally, bulls target $240 breakout
Bittensor’s TAO climbed about 5% to intraday highs near $241 as the AI-linked crypto segment posted broad gains. The rally coincided with stronger market sentiment driven by Bitcoin trading above $90,000 and Ethereum near $3,000, alongside an anticipated Fed decision and big-tech earnings. Other AI tokens — including Render (RENDER), Virtuals Protocol (VIRTUAL) and Fetch.ai (FET) — rose 5–9%, while smaller AI plays such as Oasis, AI Companion and Kite posted larger advances. TAO saw rising volume and futures open interest, suggesting heightened retail and derivatives participation. Technicals on the 4-hour chart show bullish RSI recovery and a MACD crossover; support sits around $230–$235 with $240 acting as a key pivot for a potential breakout. The article notes fundamental drivers: Bittensor’s subnet model that rewards AI model contributions and growing interest from large holders and asset managers launching AI-focused products. Traders should watch volume, futures open interest, and macro catalysts (Fed decision, big-tech earnings) for confirmation of sustained moves.
Bullish
The news is bullish because TAO’s price gain (≈5%) came with higher trading volume and rising futures open interest, indicating genuine demand from both spot and derivatives traders. The move is supported by broader sector momentum — multiple AI-linked tokens rising together — and positive macro cues (Bitcoin/ETH strength, upcoming Fed decision and big-tech earnings) that lift risk assets. Technical indicators (RSI recovery, MACD bullish crossover) on the 4-hour chart point to a potential breakout above the $240 pivot; immediate support at $230–$235 limits downside risk in the near term. Historically, sector-wide rallies led by narrative-driven themes (e.g., DeFi or NFT cycles) often attract short-term momentum flows and product inflows from asset managers, amplifying upside. Short-term impact: increased volatility and potential continuation toward new intraday highs if volume sustains. Long-term impact: depends on sustained adoption and product launches — if asset managers roll out AI-focused products and large holders accumulate, TAO could see extended appreciation; absent follow-through, the move could fade as traders take profits.