- Bittensor’s TAO Token Surges Over 10%: Speculation of Grayscale Trust Drives Rally.
- Crypto Speculation: Unconfirmed Grayscale Rumor Fuels TAO’s Bullish Momentum.
- Technical Analysis Suggests Further Gains for TAO Amidst Investor Optimism.
Bittensor, a decentralized AI platform, has witnessed a remarkable price surge in its native token, TAO, which has climbed by over 10% in the past 24 hours. This significant uptick has positioned TAO as the top gainer, according to CoinMarketcap data. As of press time, the price of TAO stood at $483.10, marking a 14% increase from the intra-day low and 21% in the last week.
Concurrently, TAO’s market capitalization and 24-hour trading volume surged by 11.93% and 38.94%, respectively to $3,304,321,962 and $85,982,888.
TAO/USD 24-hour price chart (source: CoinMarketCap)
The increase in TAO’s market capitalization is attributed to unconfirmed reports that Grayscale, a leading digital asset manager, is planning to launch a new trust associated with the TAO token. Although such rumors are still speculative, no current filings with the Securities and Exchange Commission (SEC) to support them, they have attracted a lot of attention from investors.
Market Speculation and Institutional Interest
The rumor concerning Grayscale’s potential involvement with Bittensor has circulated widely, driven by statements from pseudonymous crypto influencers like CEYEBER, who claimed to have insider confirmation. Despite the absence of official documentation or SEC filings related to this development, the mere possibility has enhanced investor sentiment significantly, contributing to the price rally. Historically, associations with established financial institutions like Grayscale have provided a credibility boost to cryptocurrencies, which often translates into bullish market behavior.
Moreover, should Grayscale were to launch a product associated with TAO, it would likely take the form of a closed-end fund available over the counter, similar to previous offerings. Such a move could open up TAO to a broader spectrum of institutional investors, potentially increasing demand and price stability. However, without concrete filings or announcements, the market’s reaction remains speculative but optimistic.
Technical Analysis and Market Outlook
The technical analysis of TAO’s price movement shows a robust upward trend characterized by higher highs and intermittent periods of consolidation. The price action has demonstrated strong support at the $429.06 level, where significant buying pressure prevented further declines.
TAO/USD 4-hour price chart (source: TradingView)
This level has established itself as a crucial support zone during the trading day. Above this, around the $450 mark, there was notable consolidation, suggesting that it is a key intraday support region where buyers are actively engaging. If the bullish momentum prevails and a bullish breakout is observed, a retest of the earlier high of $600-$650 would be anticipated.
With the Money Flow Index (MFI) rating of 65.41, the bullish momentum is strong, thus backing the potential for a continued rally. However, should the MFI trend shifts, a reversal may be looming. The Rate of Change (ROC) trend in the positive region also adds to the bullish momentum.
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