Bittensor (TAO) Price Sets Sight on $650 Following dTAO Testnet Launch

Key Takeaways

• The OpenTensor team launched the dTAO Testnet over the weekend
• On-chain data reveals rising interest in TAO surges after the development.
• TAO’s price has hit the oversold point, but what do indicators predict?

Bittensor (TAO) has experienced a rollercoaster year marked by dramatic price swings.

Once surging above $700 amid growing demand for AI-themed tokens, TAO saw its value plunge to $216 in August 2024 as the initial AI hype cooled.

Now trading around $410, the token has rebounded, fueled by major developments from OpenTensor, the team driving its development. What lies ahead for TAO’s price trajectory?

Interest in the Bittensor Token Rises

The recent launch of the dTAO Testnet on Jan. 11 has sparked renewed interest in Bittensor (TAO).

Known as the dynamic TAO Testnet, this upgrade aims to refine the project’s tokenomics and governance, steering it toward full decentralization.

According to data from Santiment, this development has influenced sentiment around TAO.

Between Jan. 7 and 12, social dominance —a metric that tracks the level of discussion about an asset relative to other projects—declined.

However, at the time of writing, TAO’s social dominance had surged to 0.20%.

Typically, a decrease in social dominance signals waning interest or market share in conversations compared to other tokens. Yet, in this instance, the recent spike suggests growing interest and heightened discussions around TAO.

Historically, rising social dominance amid a price dip often precedes a demand surge. This pattern was evident on Dec. 5, 2024, and again between Jan. 1 and 4, when increased social dominance coincided with a price uptick.

If history repeats itself, TAO could be poised for a significant rebound, aligning with the current trend of increasing social chatter.

TAO Price Analysis: Is Wave Correction Complete, or is Rebound Next?

Meanwhile, the daily TAO/USD chart shows that it has completed a five-wave Elliot Wave correction (marked ABDCE).

Based on the pattern below, the first major downturn occurred around Nov. 24 last year. Around the period, TAO’s price fell to $478 at wave A. Wave B happened as the price spiked to $714 on Dec. 8, after which the token hit wave C with a correction to $452.

Following the ABC correction, TAO jumped to $569, hinting at a sustained rally. However, it eventually succumbed to a downturn at wave E on Jan. 11 — the same day dTAO Testnet launched.

At press time, TAO had broken down the Elliot Wave as it dropped to $410. Still, it is likely to experience a rebound in the short term, with a possible 50% hike, which could take it toward $650.

TAO Price Prediction: Token Now Oversold

One indicator that aligns with this possible rebound is the Relative Strength Index (RSI). On the 4-hour chart, the RSI, which measures momentum, has dropped below 10.

Generally, when the RSI reading is above 70, the asset is overbought, and the price can decrease. On the flip side, a reading below 30 indicates that it is oversold, and a major bounce could be close.

Therefore, if TAO continues to trade above $399, this recovery is possible. If validated, the altcoin’s value might climb to the 0.768 Fibonacci level, which is close to $650.

However, a breakdown below $399 might invalidate this prediction. Should that happen, TAO’s price risks facing capitulation, which could send its price below $250.