TLDR
- Bittensor (TAO) saw a 5.1% increase over the last week, coinciding with improved investor sentiment towards AI-related investments.
- A supply halving event in December reduced daily emissions from 7,200 to 3,600 TAO tokens, with three-quarters of the total supply now staked.
- The AI crypto sector has rebounded by 30.93% since February 12, following a 30.28% loss in market cap during the preceding month.
- Technical analysis suggests potential price targets at $241 and $268, although analysts caution that the longer-term trend remains bearish.
- Subnet usage on the Bittensor network experienced a 34% rise this past week, indicating growing real-world adoption.
Bittensor (TAO) has experienced a rise of over 5% in the past week, signaling a shift in momentum for the cryptocurrency network focused on artificial intelligence. The token is currently trading at $188.90, having reached prices above $200 earlier in the week.
These gains occur as the broader AI crypto sector shows indications of recovery. Over the past month, tokens associated with AI experienced a decline of 30.28% in their combined market value, falling to a total capitalization of $14.66 billion.
However, since February 12, the sector has reversed this trend. Bittensor has led this rebound with a 30.93% rally from its recent low points.
Barry Silbert telling a room full of Bitcoin whales that is in a league of its own. The rest of AI crypto is mostly garbage.
“I think most of what we see is kinda BS”
He also mentioned seeing a 100-500x ROI. More bullish on than BTC.
Probably nothing.
— nordin.eth (@nordin_eth)
Other prominent AI tokens also recorded gains during this period. Render increased by 18%, while NEAR Protocol added 15%, suggesting a renewed interest in the AI narrative across the cryptocurrency market.
Bittensor functions as a decentralized network for machine learning. Developers utilize the platform to collaborate and train AI models.
The network’s native token, TAO, provides users with access to AI-related applications. This positions Bittensor at the intersection of blockchain technology and artificial intelligence.
Supply Dynamics Support Price Movement
A significant factor contributing to TAO’s recent performance is the alteration in the token’s supply structure. In December, Bittensor decreased its daily emissions from 7,200 tokens to 3,600 tokens through a halving event.
This reduction resulted in nearly three-quarters of the total TAO supply being locked in staking. With a reduced circulating supply available, incremental buying demand can lead to more significant price movements.
The combination of reduced emissions and high staking participation is described by analysts as a supply shock. With fewer tokens entering circulation daily, sellers have less inventory to offer to buyers.
Network activity also saw an increase this past week. Subnet usage on the Bittensor platform rose by 34%, indicating that developers are actively deploying AI workloads on the network.
Technical Outlook Shows Mixed Signals
Technical analysts have identified potential upward price targets for TAO at $241 and $268, based on Fibonacci retracement levels. The token recently surpassed local resistance at $200.
Bittensor price analysis
After holding $140 demand zone, targets overhead liquidity.
Fib targets: 0.382 ($240) & 0.236 ($268).
Vol profile: strong buy-side pressure at $170 breakout → whale conviction.
Trend: bullish div confirmed on 6h TF.
— Zach Humphries (@ZachHumphries)
However, the longer-term trend remains bearish. For TAO to shift the daily chart structure to bullish, it would need to close above $302.40, which was the January high.
Chart patterns indicate imbalances around the $170 price level. Some analysts anticipate that TAO might retrace to the $165-$175 range before attempting another upward movement.
The on-balance volume indicator has risen along with the price but continues to be in a longer-term downtrend. Moving averages and momentum indicators show bearish positioning on longer timeframes, despite the recent gains.
Bitcoin’s dominance has seen a slight decrease in February, suggesting a rotation of capital into alternative cryptocurrencies. This shift may be benefiting tokens like TAO as investors diversify their holdings.
Despite the recent bounce, TAO remains down by more than 50% year-to-date. The token’s 52-week range spans from $144.32 to $535.12, with current prices significantly below the yearly high.
Trading volume reached 230 million according to the latest data. The market capitalization stands at $1.9 billion, positioning Bittensor as one of the larger crypto projects focused on AI.
