Here's Why AI Tokens Are Surging | Credit: Hameem Sarwar
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Key Takeaways
AI crypto coins have been the best-performing category since August.
Bittensor (TAO) is rapidly approaching its all-time high price of $730.
Will TAO lead the charge for AI tokens in the upcoming bull run?
Even though Bittensor (TAO) fell 80% after its all-time high, it began to recover on Aug. 5, creating a long lower wick. It showed more strength by creating a higher low in September. The movement has become parabolic in the last seven days.
At a Wall Street fundraiser on Sept. 22, Vice President and Democratic presidential nominee Kamala Harris announced she would encourage innovative technologies like AI and digital assets, while protecting consumers and investors.
This was her first public mention of cryptocurrencies. Interestingly, she raised $27 million in the fundraiser, the largest single event haul for her campaign.
Faryar Shirzad, Coinbase’s Chief Policy Officer, stated that this is an important and constructive statement from Kamala Harris, even though it is not as forward-leaning as those by Donald Trump, the Republican nominee.
He believes that Harris understands that there is a path that promotes innovation while protecting consumers and investors.
The basket of the five biggest AI tokens has been the best-performing category since Aug. 5. This increase accelerated further today, on Sept. 23, with a large bullish candlestick measuring 21% so far.
The biggest gainer in this category is Bittensor, which is less than 40% away from its all-time high price.
The upward movement has become parabolic since Sept. 17, causing a breakout above the $350 resistance area and the 0.618 Fibonacci retracement resistance at $532.
This is the final resistance area before the all-time high of $730.
Technical indicators are showing overbought conditions but have not yet signaled weakness. The Relative Strength Index (RSI) is overbought, and the MACD has nearly reached a yearly high, but neither has generated any bearish divergence yet.
So, the upward movement may continue toward the all-time high.
TAO Nears All-Time High
The wave count suggests movement toward a new all-time high. According to the count, TAO completed a complex, W-X-Y-X-Z correction (yellow) between the March 7 all-time high and Aug. 5 low.
Then, it started a new five-wave increase (white). The sub-wave count is in black and shows an extended wave three.
If the count is accurate, TAO will reach a new all-time high during wave three and can conclude its entire upward movement at $1,146. The 1.61 external Fibonacci retracement resistance level creates this target.
October Will Be Bullish
TAO’s price action and wave count suggest a new all-time high is within reach. Kamala Harris’s positive remarks regarding AI tokens also support the rally. TAO’s rapid price increase nicely positions it as the leader of AI tokens in the upcoming upward movement.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
