Bittensor (TAO) Price: Why This AI Token Just Outperformed the Crypto Market

TLDR

• Bittensor (TAO) gained 5.1% over the past week as investor sentiment toward AI-linked investments improved.
• A supply halving in December cut daily emissions from 7,200 to 3,600 TAO tokens, with three-quarters of total supply now staked.
• The AI crypto sector rebounded 30.93% since February 12 after losing 30.28% in market cap over the previous month.
• Technical analysis shows potential targets at $241 and $268, though analysts warn the longer-term trend remains bearish.
• Subnet usage on the Bittensor network increased 34% this past week, showing growing real-world adoption.

Bittensor (TAO) has climbed more than 5% over the past week, marking a shift in momentum for the AI-focused cryptocurrency network. The token currently trades at $188.90 after reaching prices above $200 earlier in the week.

The gains come as the broader AI crypto sector shows signs of recovery. Over the past month, AI-related tokens lost 30.28% in combined market value, falling to $14.66 billion in total capitalization.

However, since February 12, the sector has reversed course. Bittensor led the rebound with a 30.93% rally from its recent lows.

Other major AI tokens also posted gains during this period. Render climbed 18% while NEAR Protocol added 15%, suggesting renewed interest in the AI narrative across the crypto market.

Bittensor operates as a decentralized machine learning network. Developers use the platform to collaborate and train AI models.

The network’s native TAO token grants users access to AI-related applications. This positions Bittensor at the intersection of blockchain technology and artificial intelligence.

Supply Dynamics Support Price Movement

A key factor driving TAO’s recent performance involves changes to the token’s supply structure. In December, Bittensor reduced its daily emissions from 7,200 tokens to 3,600 tokens through a halving event.

This cut left nearly three-quarters of the total TAO supply locked in staking. With less circulating supply available, incremental buying demand can create more pronounced price movements.

The reduced emissions combined with high staking participation creates what analysts describe as a supply shock. Fewer tokens entering circulation each day means sellers have less inventory to offer buyers.

Network activity also picked up this past week. Subnet usage on the Bittensor platform increased 34%, indicating developers are actively deploying AI workloads on the network.

Technical Outlook Shows Mixed Signals

Technical analysts identify potential upside targets for TAO at $241 and $268 based on Fibonacci retracement levels. The token recently broke through local resistance at $200.

However, the longer-term trend remains bearish. TAO would need to close above $302.40, the January high, to flip the daily chart structure to bullish.

Chart patterns show imbalances around the $170 price level. Some analysts expect TAO could retrace to the $165-$175 range before attempting another move higher.

The on-balance volume indicator bounced alongside the price but remains in a longer-term downtrend. Moving averages and momentum indicators show bearish positioning on longer timeframes despite recent gains.

Bitcoin dominance has declined slightly in February, suggesting capital rotation into alternative cryptocurrencies. This shift may be benefiting tokens like TAO as investors diversify holdings.

TAO remains down more than 50% year-to-date despite the recent bounce. The token’s 52-week range spans from $144.32 to $535.12, with current prices well below the yearly high.

Trading volume reached 230 million as of the latest data. The market capitalization stands at $1.9 billion, making Bittensor one of the larger AI-focused crypto projects.

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