TAO, SUI Surge Following Grayscale Recruitment to Crypto Fund Lineup
TAO & SUI Surge After Grayscale Inclusion | Credit: Hameem Sarwar
Key Takeaways
- Grayscale announced trusts for Sui and Bittensor (TAO).
- The prices of both assets have increased more than 50% since Aug. 5.
- Which one of them will perform better for the rest of August?
On Aug. 7, 2024, Grayscale announced it would offer two new crypto funds to its investors. They contain SUI, a Layer-1 blockchain, and Bittensor (TAO), an artificial intelligence (AI) project.
Both TAO and SUI have already recovered all of the losses resulting from the Aug. 5 decline, but the TAO performance has been more impressive, both when looking at the trust and the price action.
Let’s take a closer look at both and attempt to determine where they will move next.
Grayscale Adds Bittensor and Sui
Both trusts are single-asset funds, which only hold the cryptocurrencies that name them. Grayscale believes that both are innovative products, stating:
“We are excited to add Bittensor and Sui to our product suite, and believe Bittensor is at the center of the growth of decentralized AI, while Sui is redefining the smart contract blockchain.”
In July, Grayscale announced an AI token trust that contains four cryptocurrencies , including TAO, which exists in parallel to the exclusive TAO trust. However, there were no previous trusts that contained SUI.
As of Aug.8, Grayscale offers 20 different funds, sixteen single-asset and four diversified.
The Grayscale Sui trust has $229,875 under management while the Bittensor one has $1,180,218. The value of the Grayscale Sui trust is $9.38 while that of Bittensor is $4.
TAO Retests Long-Term Resistance
The TAO price had fallen under a descending resistance trend line since April. After 75 days, the price of TAO broke out from the trend line and reached a high of $367. However, a rejection from the $360 resistance area followed.
Nevertheless, the Aug. 5 low served to retest this trend line as support. The same day, TAO created a bullish hammer candlestick (white icon) and accelerated its climb. Since the low, TAO has increased by 70%.
Technical indicators like the RSI do not yet confirm the reversal. This is because the RSI is still below 50 and has not broken out from its resistance trend line. But, the decisively bullish price action implies the increase will continue.
The first resistance for TAO is at $360, and if the price breaks out, the next one will be at $270.
SUI Price Recovers – Attempts Breakout
The daily chart for SUI shows a decline under a descending parallel channel since April. These channels usually lead to breakouts since they contain corrective movements.
The price of SUI touched both the resistance and support trend lines of this channel several times (black & white icons).
The most recent touch of the support was on July 5. This is interesting since the August 5 decline did not take the price all the way down to the support.
Rather, bulls stepped in and pushed it upward, moving SUI to the channel’s upper portion. These two reasons are why some analysts see this price action as being bullish.
On top of this, the daily MACD created a bullish divergence (green) while the RSI broke out from its trend line and is moving above 50.
Because of the bullish price action and indicator reading, a breakout from the channel and SUI increase to the next resistance at $1.33 is the most likely future outlook. The 0.5 Fibonacci retracement resistance level creates this target.
