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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.
crypto-economy.com