The Bittensor (TAO) token continues its five-day rally, reaching a two-month high. According to CoinJournal, the crypto asset's price has risen approximately 25% over five days, including a 16% gain the previous week and an additional 12% jump on Sunday. Buyers are targeting the psychological resistance level of $300, which could become an entry point into the next phase of the rally. Meanwhile, activity in the derivatives market has reached a three-month high, with TAO open interest standing at $428.57 million. The increase in positions indicates that traders are actively opening new contracts rather than simply closing existing ones during the uptrend.
Several factors have contributed to the token's rise. First, the release of ChatGPT-6 Astra has renewed investor interest in AI-oriented cryptocurrencies. TAO's social dominance grew from 0.05% on Thursday following the Astra release to 0.12% at the time of analysis. Second, the launch of the Buttensor (BUTT) memecoin on the Raydium decentralized exchange on Monday intensified attention toward Bittensor. Buttensor appeared just one day after TAO was officially added to the Raydium platform. The memecoin's distinctive mechanic is that fees are automatically directed toward purchasing TAO, with the acquired tokens subsequently distributed to BUTT holders. This ties the speculative interest surrounding the memecoin to real demand for the underlying asset. Such a scheme may sustain upward buying pressure on TAO in the short term, though the durability of this effect depends on sustained trading activity and retail demand.
Technical analysis points to mixed signals. Bittensor is trading above all major moving averages: the 50-day, 100-day, and 200-day exponential moving averages are clustered in the range from $220 to $236, confirming the strength of the current uptrend. The MACD indicator remains above the signal line in positive territory, suggesting the upward momentum is intact. However, the relative strength index has reached 70 on the daily chart, bringing TAO close to the overbought threshold. This warns of the likelihood of a temporary cooling of the rally upon profit-taking. A breakout above the $300 level with a close above it could open the path toward $369 – the high set on September 13, 2025. If TAO rebounds from $300, the token could pull back toward the 200-day moving average near $236, and then to a deeper demand zone between the 100-day ($222) and 50-day ($220) averages. TAO remains in a bullish scenario as long as it trades above the moving average cluster, but the overbought condition creates vulnerability to a short-term correction.
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This material is prepared exclusively for informational purposes and does not constitute financial advice or a recommendation.