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Artificial intelligence project Bittensor's TAO outperforms rivals yet again, yet three challenges remain.
It seems that the digital token TAO, part of the Bittensor platform, has been catching some attention lately. Scores of investors are jumping on the bandwagon following a recently published study that hints at the asset's potential for further growth.
Over the past 24 hours, TAO saw a 2.34% rise, which could be a sign of things to come as indicated in the research. This minor bounce comes hot on the heels of impressive gains over the past month and the past 4 weeks, up by 48% and 23%, respectively.
A Gem in the Crypto Market
Funstrat's study on TAO's performance reveals that the asset has outshone major crypto players like Bitcoin (BTC) and Ethereum (ETH) in recent years. While Bitcoin gained 195% and Ethereum saw a 2% increase since March 2023, TAO managed to gain 169%, a substantial difference. What's more, in comparisons going back to 2021, TAO has risen 167%, while Ethereum has only witnessed a minor 2% increase.
The study also points to growing adoption of TAO by institutional investors, with Grayscale being a notable adopter. This increased demand has contributed to an increase of 200,000 users in the market, adding to TAO's price growth.
In the realm of AI tokens, TAO continues to outperform popular competitors such as Render, Near Protocol, and the Artificial Superintelligence Alliance, upticking collectively by 140%.
Bullish Market Reaction
Unsurprisingly, the market has reacted positively to this newfound potential. Data from Coinglass Netflow indicates that over the past day, an impressive $3.11 million worth of TAO has been purchased, pointing to increasing accumulation.
Meanwhile, the long-to-short ratio in the derivatives market stands at 1.0105, indicating a higher ratio of buying activity to selling, which is typically a signal of further price appreciation.
Soaring to New Heights?
Using the Fibonacci retracement level, the potential rally for TAO could see the asset testing new heights. The chart suggests a possible rally to $697.7, the peak of the line marked out. However, breaking through key resistance levels like $370.2, $425.2, and $495.3 will be vital in ensuring this bullish trend continues.
It's crucial to acknowledge, though, that such a climb will be no walk in the park. These resistance hurdles may cause TAO to consolidate or even dip slightly before resuming its upward trajectory. But with momentum building and bullish sentiment reigning, a continued rally in the coming days seems likely, especially if accumulation volumes stay strong.
Now here's some extra knowledge if you're interested:
Immediate Resistance: Overcoming resistance levels of around $322.90 to $340 will set the stage for higher prices.
Intermediate Resistance: Obstacles such as $348.10, $359.92, and $371.44 may present challenges, but breaking through these resistance levels could lead to further price growth.
Long-term Resistance: Further resistance is expected at levels reaching $435 and $480. Overcoming these barriers will be crucial for TAO's ability to sustain its bullish momentum towards significantly higher prices.
- Intrigued by the digital token TAO, investors are flocking to the Bittensor platform after a research study suggested its potential for further growth.
- Over the past 24 hours, TAO experienced a 2.34% increase, potentially signaling more gains to come as indicated in the study.
- TAO has outperformed major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) in recent years, with a gain of 169% compared to BTC's 195% and ETH's 2% increase since March 2023.
- The adoption of TAO by institutional investors, such as Grayscale, has contributed to an increase in its user base by 200,000 and its price growth.
- In the AI token sector, TAO is outperforming competitors like Render, Near Protocol, and the Artificial Superintelligence Alliance, collectively growing by 140%.
- The market's response to TAO's potential has been positive, with a long-to-short ratio of 1.0105 in the derivatives market indicating a higher buying activity, potentially leading to further price appreciation.
