Bittensor (TAO) To Lead The ‘AI Wave’: Analysts Bullish Despite 10% Price Drop

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TAO

Bittensor (TAO) has been one of the best-performing AI (Artificial Intelligence) tokens this cycle after surging 180% during Q1 2024. The token has significantly retraced from its march all-time high (ATH) and is currently testing key resistance levels. Some crypto analysts seem unsure about TAO’s short-term performance but remain bullish long-term.

Bittensor To Lead The ‘AI Wave’?

Bittensor Protocol’s token TAO recently saw a major downturn following the broader market retrace. The token, which had recovered the $300 mark in July, faced a significant correction as August started. The price decline deepened on August 5, falling below the $180 level.

As the crypto market recovered, TAO’s price surged over 75% from its lowest point last Monday. The token retested the $300 resistance level over the weekend but failed to hold it as the market saw another crash this Monday.

Bittensor’s native token registers a 10% drop from its Friday price of $315, which seems to have left some investors and market watchers pondering TAO’s short-term performance. According to renowned analyst Altcoin Sherpa, the AI token might experience another 25%-30% drop soon.

To Sherpa, TAO’s “bearish market structure is still there,” which could drive the price below the $200 support level again “pretty soon.” Additionally, the analyst wonders whether AI tokens like TAO will outperform most of the market “like they did in early 2024.”

Nonetheless, Gonzo, another market watcher, believes that the token will “lead the AI wave” in the coming months. Replying to Sherpa, the investor suggested that TAO might need to move sideways for a while and “hope that BTC doesn’t dump” to start a new uptrend.

Gonzo also considers that Grayscale “might dump it hard to get in cheap” but “will pump it to make money” after launching its Bittensor fund. As reported by NewsBTC, Grayscale Investments announced the offering of its new crypto fund, the Grayscale Bittensor Trust, last week.

No Clear Direction For TAO Short-Term

Crypto trader Pidgeon analyzed TAO’s long-term performance, finding an unclear path in the shorter timeframes. Per the post, the chart displays a “big head and shoulders” pattern in the weekly timeframes. To the analyst, this pattern, which suggests a trend reversal, “remains completely irrelevant as long as Bittensor holds the $200 support area.”

He considers that the chances of TAO holding this level significantly increased after “Monday’s major fakeout and liquidity sweep.” Additionally, Pidgeon highlighted that the token is moving within a clear range between the $210 and $360 levels in the daily timeframe, where the token has previously consolidated.

Bittensor
TAO is moving between the $210-$360 price range. Source: Pidgeon on X

The trader considers there won’t be “major direction until either side breaks.” To break from the downtrend, TAO must reclaim the $310 level before retesting the $360 mark. If it breaks above the $360 trendline, the token’s price could retest the $480 and $570 resistance levels before trying for a new ATH.

If it fails to hold above the $200 support zone, it might “revisit the wick lows down around $160” and even go as low as $90. Nonetheless, he identified a lower high structure “that it has been stuck in for months” and that “tends to break to the upside.”

Ultimately, the trader stated he’s leaning bullish med-long term, but it will depend on “which side of the range it breaks.” As of this writing, TAO is trading at $277, a 4% drop in the last 24 hours.

Bittensor, TAO, TAOUSDT
Bittensor (TAO) performance in the three-day chart. Source: TAOUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies ­–or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages ­– currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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