Bittensor (TAO), a cryptocurrency focused on artificial intelligence, has experienced a remarkable 106.8% price surge over the last 30 days. As of October 14, TAO is trading at $649, up 181% from its September low. This impressive growth has propelled its market capitalization to over $4.79 billion, making TAO one of the top-performing cryptocurrencies, ranking third after Neiro and Sui.

Nvidia’s Influence on TAO’s Growth

TAO’s rise has been partially fueled by the strong performance of Nvidia, a leader in AI technology. Nvidia’s stock price increased by 15.4% in the past 30 days, pushing its market cap to an impressive $3.31 trillion. The AI boom has lifted not only Nvidia but also AI-focused cryptocurrencies like TAO, contributing to a 1.6% rise in the overall AI crypto market cap, now at $29.8 billion.

Institutional interest has played a crucial role in TAO’s rally. Grayscale, a major digital asset manager, introduced a fund specifically focused on Bittensor. This new fund has attracted $4.9 million in assets under management. Grayscale’s decision to increase TAO’s allocation in its AI fund from 2% to 31% has significantly bolstered investor confidence, leading to higher adoption and investment in the token.

Increased Futures Market Activity

TAO’s demand in the futures market has surged, hitting a record high of $220 million on October 14. This marks a significant jump from September’s low of $46.8 million, showing strong interest from traders and investors. Open interest—a key indicator of market demand—has continued to rise, further supporting the positive outlook for TAO.

The Bittensor network has also seen a rise in on-chain activity, with the number of active accounts growing from 127,000 in September to 134,000. Additionally, over 5.9 million TAO tokens are now staked by holders, highlighting the growing engagement and trust within the community.

Analysts Expect Continued Gains for TAO

Many analysts are optimistic about TAO’s future. One expert predicted a short-term price target of $1,000 and a mid-term goal of $3,330, pointing to strong technical indicators. However, some caution remains. Pseudonymous trader XO noted that TAO is trading within an upward channel but warned that the $650 support level is crucial. If the price drops below this level, it could signal a shift away from the current bullish momentum.

Looking at the 1-day price chart, TAO is trading above its 50-day Moving Average, which is a bullish signal. The Relative Strength Index (RSI), a measure of price momentum, remains steady at 65, suggesting there is still room for further gains before the market enters overbought territory. While the RSI recently pulled back from higher levels, it indicates that bulls are still in control, and the rally may continue in the short term.

With strong institutional support, increased market activity, and positive technical indicators, the outlook for TAO remains optimistic. However, traders should keep an eye on key support and resistance levels to manage potential risks.