Bittensor [TAO] gained more than 10% in the past 24 hours, at press time, extending TAO’s weekly gains to more than 21%. Social Insights on CoinMarketCap showed that the mindshare of TAO surged by 23%, with mentions and engagements surpassing 12.44K.
Notably, a resurgence in the AI narrative and more liquidity exposure drove this shift in social sentiment.
Is the AI narrative back as TAO surges 10%?
Typically, news surrounding tech stocks fuels the AI narrative, as it reflects overall market sentiment. As such, the Q2 earnings report indicated Nvidia [NVDA] had record revenue of $96.20 billion.
This reading fueled tokenized NVDA to climb to around $221 with over $131 in daily volume. The strength spread across the AI sector, with Bittensor and Venice Token [VVV] benefiting.
Additionally, Bittensor expanded its liquidity by more than $600K after the TAO-USDC pool went live on Aerodrome [AERO]. This means the token is now exposed to Base Chain users. As a result, token trading volume has surged significantly in August, with the average surpassing $300 million in mid-month.
Moreover, there was an organic social growth. The ecosystem was expanding with 128 subnets as of press time.
In general, the market cap of the AI sector was up slightly, with TAO being the most standout. Still, this AI narrative resurgence is not convincing enough to trigger a full bull reversal.
What do TAO bulls need to trigger a full reversal?
On the daily chart, TAO is trading above a descending trendline that has been a resistance since late March. The altcoin has also flipped the 200-day EMA at $236.5, reinforcing the shifting market structure. TAO’s multi-month trendline breakout was confirmed with a retest at the $225 level.
At the time of writing, the Funding Rate was also leaning toward buyer dominance with a reading of 0.0055%. Additionally, the Relative Volatility Index (RVI) was at 72.77, indicating volatility was rising with the prices.
Despite the bullishness in TAO, an analyst warned that a full reversal hinged on a level in the 3-day chart, noting,
If $TAO breaches over the $260 range will be absolutely ready to trigger the full bullish reversal.
If that becomes the case, TAO may break subsequent levels at $290, $350, or even above $450, as levels above $450 were last visited in November.
Otherwise, if a rejection happens at $260, TAO may retest the broken trendline or even trade back into the consolidation pattern.
Final Summary
- Bittensor rallied by 10% amid record Q2 earnings for Nvidia, triggering an uptick in the broader AI sector.
- TAO cleared a multi-month trendline resistance and confirmed the breakout with a retest.