Bittensor [TAO] Crushes AI Crypto Rankings—But These 3 Roadblocks Could Derail Its Rally

TAO’s back on top of the AI token leaderboard—again. The decentralized machine learning protocol just flipped its rivals with a 30% weekly surge, proving the ’AI’ crypto narrative still has legs. But before you ape in chasing the green candles, watch for these traps.

First hurdle: GPU costs are eating miners alive. Bittensor’s proof-of-intelligence model burns cash faster than a Silicon Valley startup—and those hardware bills always get passed to token holders. Second: The ’decentralized’ AI claim looks shaky when 40% of TAO sits in whale wallets. Third: Every altcoin’s favorite buzzword (’AI’) is now Wall Street’s favorite pump-and-dump theme. Remember when hedge funds swore NFTs were the future? Exactly.

TAO’s tech is legit. Its community is rabid. But in crypto, even the best protocols get kneecapped by merciless tokenomics and trader ADHD. Proceed—but maybe keep one hand on your exit button.

Research shows TAO remains an outperformer

A study by Funstrat on TAO’s performance shows the asset has outperformed major market assets and has more growth potential ahead.

A performance comparison between Bitcoin [BTC] and Ethereum [ETH]—two leading assets in the crypto market—since March 2023 shows TAO’s performance remained strong.

While Bitcoin gained 195%, Bittensor had gained 169%, a 26% difference. A comparison with Ethereum shows that TAO rose 167%, while Ethereum saw a 2% increase over the past two years.

Interestingly, there has been notable adoption of TAO by Grayscale institutional investors and across the market.

According to the report, the number of users in the market has risen by 200,000 within this period, an increase that has influenced its price growth.

Among AI tokens in the crypto market, TAO continues to dominate ahead of Render [RENDER], NEAR Protocol [NEAR], and Artificial Superintelligence Alliance [FET], with a collective gain of 140%.

Market reacts positively

Of course, the market has responded with strong buying activity.

At the time of writing, Coinglass Netflow, which tracks accumulation, showed that in the past 24 hours, there has been more buying activity. Traders have purchased $3.11 million worth of the token from the market.

Source: CoinGlass

Similarly, in the derivatives market, the buying volume remains high, with a 1.0105 reading indicated by the long-to-short ratio.

When this ratio is above 1, it indicates that there has been more buying than selling in the derivative markets.

If buying activity continues to grow, it could imply that TAO’s price will continue to rise, potentially reaching new highs for the year.

To determine how far TAO could rally, AMBCrypto analyzed its price on the chart to identify the asset’s next level. 

Using the Fibonacci retracement level, Bittensor could potentially rally to a high of $697.7, the peak of the line marked out.

Source: TradingView

Having said that, TAO faces resistance ahead. Three key levels—$370.2, $425.2, and $495.3–may slow its ascent. At each hurdle, price could consolidate or pull back slightly before any fresh leg upward.

However, with momentum building and investor sentiment leaning bullish, a continued rally in the coming days appears likely, especially if accumulation sustains its current pace.