The cryptocurrency market is ever-evolving, and recent developments regarding Bittensor (TAO) have sparked considerable interest among investors and enthusiasts alike. With its market cap experiencing a notable 9% increase, many are questioning whether this digital asset is significantly undervalued and poised for immense growth. As we delve into the latest insights shared by experts in the field, it becomes clear that Bittensor is an intriguing prospect in the realm of decentralized artificial intelligence.
Insights from Researchers
A recent analysis by researcher Marco Polo underscores the substantial potential of Bittensor, labeling it as an asset that remains considerably undervalued. According to Polo, the advent of the Grayscale Bittensor Trust is expected to simplify the processes of investment and trading for this cryptocurrency, unlocking further opportunities for investors.
“Gm fam, You need to deep dive into $TAO to understand how much undervalued it actually is! Grayscale will make it easier to invest in the native tokens of decentralized AI protocols through a security. $TAO $5k will still be undervalued. AI season will be huge!”
— Marco Polo (@MarcoPoloMaps), August 19, 2024
This perspective indicates that the upcoming AI season may significantly enhance the value of TAO, with predictions suggesting that even a $5,000 valuation may still fall short of its true potential.
The Great Potential of Bittensor’s Projects
Bittensor’s ongoing developments deserve attention. The teams behind this project, recognized for their hard work, have rolled out innovative products like Corcel and Tradewithdale. These offerings are already available for users, demonstrating the practical applications of Bittensor’s blockchain technology.
Key Metrics of Bittensor (TAO)
- Market Cap Increase: 9%
- Current Market Cap Value: $2.177 Billion
- Spot Volume Inflow: $57.298 Million
- Supply in Circulation: 34.52% of 21 Million TAOs
- Liquidity Ratio: 2.68%
Despite this surge in market cap and spot volume, Bittensor’s liquidity ratio remains a concerning factor that investors should monitor closely.
Trading Dynamics and Price Action
Recent trading activity showcases a bullish sentiment towards TAO, as reflected in the long-short ratios, with bulls leading over bears at a ratio of 1.0325. Within a 24-hour period, short liquidations amounted to $55.31K, while longs saw only $7.37K.
In terms of price action, Bittensor has shown remarkable growth, with a staggering 1600% increase from October 2023 to March 2024. However, after hitting an all-time high of $755.02, TAO faced resistance, leading to a profit-taking phase that incurred losses exceeding 70% of its earlier gains. Subsequently, the asset formed a downtrend, creating lower lows until revisiting its initial demand levels by July 5th.
Recent Price Developments
- Current Resistance Levels: $358 and $488
- Support Levels: $240 and $260
At present, TAO is contending with various resistance points, particularly from the 50-day and 200-day exponential moving averages (EMAs). A successful breach of these levels could indicate a strong upward movement, supported by bullish signals such as the MACD indicator showcasing a crossover and an RSI of 54.27.
Conclusion
As Bittensor (TAO) continues to attract attention, both the short-term technical outlook and the foundational developments of the project suggest considerable potential for future growth. Investors interested in decentralized AI protocols should keep a close watch on TAO, particularly as new products emerge and the market dynamics evolve.
