Key Takeaways
Bittensor’s TAO token gained 6.5% in the 24 hours leading up to 10:00 EDT on May 2, standing out with bullish momentum while most cryptocurrencies in the artificial intelligence category traded flat.
The move pushed TAO past its local high of $267.4 from April 17, confirming a bullish short-term structure for the token, according to analysis from AMBCrypto. The breakout was driven by buyers defending the $240 support zone, which gradually pushed the price back above the psychological $250 level before the rally accelerated.
From a technical perspective, the token presents a buying opportunity after breaking past the $260 resistance area. The Relative Strength Index (RSI) climbed back above the neutral 50 mark, reinforcing the shift in momentum. However, the On-Balance Volume (OBV) has only seen a shallow bounce, indicating that a significant surge in demand has not yet materialized. Key support levels to watch for any bullish invalidation are $250 and $233, while the next major resistance hurdles are in the $273-$281 zone. A decisive move above that could open the path to price targets of $328 and $377.
The token’s strength was an outlier in a mixed digital asset market. On the same day, Zcash (ZEC) led gainers with an 11.5% advance, while Bitcoin (BTC) climbed a more modest 2.36% to $78,372, according to CoinGecko data. The broader market appeared cautious as traders digested commentary from the Federal Reserve and awaited quarterly earnings from AI-focused mega-cap tech companies like Microsoft and Alphabet, whose capital expenditure plans are a key barometer for risk appetite.
This article is for informational purposes only and does not constitute investment advice.
