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Cryptocurrency News Articles

Bittensor (TAO) Price Prediction: Can It Maintain Its Momentum and Secure Further Gains?

Jan 03, 2025 at 10:00 am

Bittensor (TAO) price is up 15% in the last 24 hours, as it continues to challenge RENDER for the second spot among the largest AI-focused cryptos

Bittensor (TAO) Price Prediction: Can It Maintain Its Momentum and Secure Further Gains?

Bittensor (TAO) price is up 15% in the last 24 hours, as it continues to challenge RENDER for the second spot among the largest AI-focused cryptos, with VIRTUAL firmly holding the top position.

The uptrend is supported by strong technical indicators, which show that the positive sentiment surrounding AI-related tokens is boosting TAO. However, whether it can maintain its momentum and secure further gains will depend on the sustainability of the current trend and key support and resistance levels.

Ichimoku Cloud Paints a Bullish Picture for Bittensor

The Ichimoku Cloud chart for TAO demonstrates a strong bullish setup, as the price has decisively broken above the red cloud. This breakout signifies a shift in market sentiment, with buyers taking control and driving the price higher.

The green cloud ahead, formed by the upward-sloping Senkou Span A and B lines, further reinforces this bullish outlook, indicating that momentum is expected to remain positive in the near term.

Moreover, the blue Tenkan-sen (conversion line) is above the orange Kijun-sen (baseline), signaling strong short-term price momentum relative to the longer-term trend. The green Chikou Span (lagging span) is well above both the price and the cloud. That confirms the bullish alignment with past price action.

For Bittensor price to maintain this upward momentum, it must stay above the cloud and continue building on the recent breakout. However, any retracement back into the cloud could signal a potential loss of bullish momentum or a period of consolidation.

TAO ADX Shows the Uptrend Is Getting Stronger

The ADX (Average Directional Index) for TAO is currently at 29, marking a significant increase from 14.5 just one day ago. This sharp rise indicates that the strength of the current trend has grown considerably, aligning with TAO’s apparent attempt to establish an uptrend. The recent surge established Bittensor as the 3rd biggest artificial intelligence coin in crypto.

The ADX measures the strength of a trend on a scale of 0 to 100, with values above 25 indicating a strong trend and readings below 20 suggesting weak or absent trend momentum.

With an ADX of 29, Bittensor is now firmly in strong trend territory, signaling that the emerging uptrend has gained solid momentum. This level suggests that buying activity is driving the price upward with increasing conviction. If this momentum continues, the trend may sustain in the short term.

TAO Price Prediction: A Further 25% Gain?

If the current uptrend strengthens further, TAO’s EMA lines suggest that a Golden Cross could form. This would signal sustained upward momentum and could drive TAO price to test the resistance at $565.

If this level is broken, the price could continue rising toward $645, representing a potential 25% price increase. Such a move would potentially position TAO as the biggest AI coin in the market, surpassing RENDER and VIRTUAl.

On the other hand, if the uptrend loses momentum and fails to hold, TAO price could face a correction. In this scenario, the price may first test the support at $487. A break below this level could result in a sharper decline. That would push TAO price down to $449, marking a potential 12.9% correction.

News source:beincrypto.com

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