TAO has surged nearly 20% to a 3-month high after NVIDIA CEO Jensen Huang praised the project’s decentralized AI training capabilities.
Key technical indicators point to a structurally intact bullish trend, suggesting TAO could extend its gains if demand holds.
TAO’s RSI is deep in overbought territory, raising the risk of a sharp pullback.
Bittensor (TAO) has emerged as today’s standout performer, surging nearly 20% to lead gains across the broader crypto market.
During Friday’s early trading session, TAO briefly traded at a 3-month high of $310.60 before retreating to $297.20 at press time.
The demand spike traces directly to new remarks made by NVIDIA CEO Jensen Huang on a widely followed podcast that have sent traders rushing in to take positions.
With bullish sentiments strengthening, TAO could extend its gains in the meantime. However, the rally has its headwinds.
Huang’s Endorsement Sends TAO Traders Into a Frenzy
During a recent appearance on the All-In Podcast, NVIDIA CEO Jensen Huang specifically commended Bittensor for successfully training a 4-billion-parameter Llama model using a fully distributed computing model.
“The entire process was fully distributed,” Huang noted, adding that the team “executed and oversaw the full training workflow in a stateful manner” — a feat he described as a remarkable technical achievement.
The endorsement has since triggered significant buy-side pressure among TAO holders, pushing its price up by double digits in the past 24 hours.
Trading volume has exploded alongside the price move, climbing over 100% in the past day.
When an asset’s price and trading volume rise in tandem, it is a strong bullish signal. It means the rally is being driven by genuine participation rather than speculative trades.
The high volume that follows TAO’s upward move indicates that its buyers are actively absorbing available supply at higher price levels, suggesting conviction behind the move.
TAO’s Bull Run Has a Solid Floor
Some of TAO’s key technical indicators assessed on the daily chart support this positive outlook. For example, at press time, the green line of TAO’s Supertrend indicator is acting as dynamic support for its price at $218.80.
The Supertrend is a momentum-based indicator that helps traders identify market direction by plotting a line either above or below the price. When price trades below the indicator — in which case it appears as a red line above the candles — it signals a bearish trend. It indicates that selling pressure is dominant and the market is in a downtrend.
On the other hand, as is currently the case with TAO, when the price trades above the green line, it signals the opposite. The market is in a confirmed uptrend, buying pressure is dominant, and the indicator itself acts as a dynamic floor that the price can lean on during pullbacks.
As long as TAO holds above the $218.80 Supertrend support on a daily closing basis, the bullish structure remains intact.
Buyers Have Been in Control for Weeks — and It’s Showing
TAO’s Bull Bear Power (BBP) supports this bullish argument. Currently reading at 81.1, the indicator has remained firmly in positive territory since mid-March.
Daily chart readings show a sustained stretch of green bars that the indicator has registered since the beginning of March.
The BBP indicator measures the relative strength of buyers against sellers. Positive readings indicate that bulls are driving price higher, while negative readings reflect bearish dominance. The higher the positive value, the stronger the buying pressure.
TAO’s BBP signals that buying conviction behind this rally is substantial. The indicator’s sustained positive readings across consecutive sessions confirm a strong accumulation trend among market participants, which could further drive its value higher.
One Signal Says TAO May Have Run Too Far, Too Fast
Despite this bullish backdrop, TAO’s Relative Strength Index (RSI) signals caution. At press time, the RSI sits at 79.28, deep in overbought territory.
The RSI is a momentum indicator that measures an asset’s overbought and oversold conditions. Its values range from 0 to 100, with readings above 70 indicating that an asset may be overbought and due for a pullback. On the other hand, values under 30 signal that the asset is oversold and due for a reversal.
TAO’s nearly 20% single-session move has compressed a significant amount of upside into one candle, and with RSI this extended, a brief pullback would not be unusual.
In this scenario, the altcoin could shed its recent gains and plunge below its next major support floor at $292.
If the bulls fail to defend this level, TAO risks falling to $225.50 and approaching the Super Trend Line. A breach of this level could trigger a pull beow $200 and toward 140.
Conversely, if demand continues to enter the market despite its overextended nature, TAO could log some gains and rally toward $339.70.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
