Bittensor (TAO) Surges 108% in September, Riding AI Wave

Bittensor (TAO), an artificial intelligence-focused cryptocurrency, emerged as one of the top performers in September, recording an impressive 108% gain. This rally propelled TAO to become the second-best performing token among the top 100 cryptocurrencies, trailing only behind Sui (SUI), which saw a 115% increase.

AI Industry Developments Fuel TAO’s Growth

The surge in TAO’s value coincided with a broader rebound in AI-related assets, including tech giants like Nvidia, C3.ai, Alibaba, and Palantir. Major developments in the AI industry, such as Alibaba’s launch of over 100 new open-source AI models and OpenAI’s valuation spike from $100 billion to $150 billion, likely contributed to the positive sentiment surrounding AI-focused cryptocurrencies.

Grayscale’s launch of a TAO fund played a significant role in boosting investor interest. The fund has already attracted over $4.1 million in assets and trades at a 5.6% premium to net assets. This institutional backing has lent credibility to Bittensor’s project and fueled retail investor enthusiasm.

On-Chain Metrics and Technical Analysis Point to Growing Adoption

On-chain data reflects growing adoption of the Bittensor network, with active accounts surpassing 127,000 and staked tokens reaching 5.9 million. The demand in the futures market has also surged, with open interest hitting a record high of $172 million on September 30, up from $46 million at the beginning of the month.

From a technical analysis perspective, TAO’s price chart shows bullish indicators. The token formed a golden cross as its 200-day and 50-day moving averages crossed, typically seen as a positive sign by traders. TAO also broke out of a triple-bottom pattern at $217, surpassing its neckline at $365.

Analysts Remain Bullish, But Caution Advised

Some analysts remain optimistic about TAO’s future price action. Jeff Sekinger points out that historically, when TAO’s Relative Strength Index (RSI) reaches 70 on the three-day chart, significant price increases have followed. Another analyst, Donnie, suggests that TAO could potentially “fill the wick” to its previous high above $1,000, especially considering that it hasn’t yet been listed on Coinbase and Bitcoin hasn’t entered a new price discovery phase.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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