Bittensor (TAO) To Lead The ‘AI Wave’: Analysts Are Bullish

Bittensor (TAO) has been one in all 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 significant downturn following the broader market retrace. The token, which had recovered the $300 mark in July, faced a big correction as August began. The value decline deepened on August 5, falling below the $180 level.

Because 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 didn’t hold it because the market saw one other crash this Monday.

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

To Sherpa, TAO’s “bearish market structure continues to be there,” which could drive the value below the $200 support level again “pretty soon.” Moreover, the analyst wonders whether AI tokens like TAO will outperform a lot of the market “like they did in early 2024.”

Nonetheless, Gonzo, one other market watcher, believes that the token will “lead the AI wave” in the approaching months. Replying to Sherpa, the investor suggested that TAO might must move sideways for some time and “hope that BTC doesn’t dump” to begin a recent uptrend.

Gonzo also considers that Grayscale “might dump it hard to get in low cost” but “will pump it to make cash” after launching its Bittensor fund. As reported by NewsBTC, Grayscale Investments announced the offering of its recent 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 within the shorter timeframes. Per the post, the chart displays a “big head and shoulders” pattern within the weekly timeframes. To the analyst, this pattern, which suggests a trend reversal, “stays completely irrelevant so long as Bittensor holds the $200 support area.”

He considers that the probabilities of TAO holding this level significantly increased after “Monday’s major fakeout and liquidity sweep.” Moreover, Pidgeon highlighted that the token is moving inside a transparent range between the $210 and $360 levels within the each day timeframe, where the token has previously consolidated.

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 interrupt 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 recent ATH.