The Artificial-Intelligence (AI) theme based tokens are in focus and investors were showing their interest to buy these potential picks.
From these pocket, Bittensor (TAO) is the fourth largest AI token by market cap which is relatively well positioned and poised for an upcoming bull rally soon.
Recently, the token has recovered from the bottom mark of $330 and registered a falling wedge breakout. Afterward, follow-on buying activity was noted and the token jumped over 30% this week.
Still, the token has much more space to bounce and may reach the $500 mark this week. The technicals are bullish and favoring the upside ahead.
At press time, the Bittensor token (TAO) price traded at $470.46 with an intraday rise of 10.10%, reflecting buying momentum on the chart. It has a monthly return ratio of -8..90% and 11.20% yearly.
The pair of TAO/BTC is at 0.00673 BTC, and the market cap is $3.20 Billion. Analysts are neutral and suggest that the TAO token price may stretch the up move and will reach the $500 mark this month.
Bittensor (TAO) Looks Bullish: Rally Imminent?
For weeks, the TAO token was in a retracement phase and completed a correction over 38% last month. Still, the token placed above the 50 day EMA mark and relatively looked stronger as compared to its peers.
Source: TradingView
The price action highlights that the token has made a fresh new higher high above the $450 mark and guides a trend reversal on the charts.
Some of the prominent analysts have shared their opinion on the X platform which gave belief that token might outperform ahead. The Relative Strength Index (RSI) curve stayed in the overbought zone and formed a positive crossover on the charts.
Per the tweet from @Crypto Rand, the TAO token is ready to surf gains ahead and displayed a bullish price action.
$TAO pushing for the mega bullish breakout. Ready to surf the #AI wave pic.twitter.com/FEnFbQX7ft
— Crypto Rand (@crypto_rand) May 20, 2024
Source: X
Similarly, @Crypto Tony said that TAO token has breached the downward trendline hurdle and may skyrocket in the upcoming sessions.
$TAO / $USD – Update
— Crypto Tony (@CryptoTony__) May 22, 2024
$408.00 i am in since and will hold while we are above. Nice break of the downtrend line here pic.twitter.com/lfqCyuShwc
Source: X
Surge in Volatility and Santiment Data
Following the price up move, the price volatility data sharply shot up over 43% to 0.029 mark, signifying the investor speculation.
Source: Santiment
Going forward, the weighted sentiment data looked positive and is favouring the bull army, and suggests that the token has potential to outperform in the next sessions.
Development Activity Data Skyrockets, What Does it Indicate?
For weeks, the development activity data noted a consistent rise, soaring over 25% this week, signifying the positive outlook.
Source: Santiment
Futures Data Reveal Long Build Up Activity
The futures data reveal the long buildup activity and is highlighting investor willingness to buy the TAO token.
Source: coinglass
The open interest data spiked over 11.28% to $57.10 Million in the last 24 hrs, revealing the potential surge of the token.
Conclusion
The Bittensor (TAO) price has triggered a trendline breakout and is likely to skyrocket gains ahead. Moreover, the token has escaped the key moving averages and will reach the $500 mark soon.
