Bittensor’s TAO rockets 66% in a month—here’s what could send it soaring past $450

Bittensor’s native token TAO isn’t just climbing—it’s mooning. A 66% monthly surge has traders scrambling, and two key factors could ignite the next leg up.

First: Network adoption. Bittensor’s decentralized machine-learning platform is gaining traction, and TAO’s utility as its governance and incentive token fuels demand. More nodes, more demand—simple as that.

Second: Macro tailwinds. With Bitcoin ETFs sucking up institutional oxygen, altcoins like TAO are primed for speculative pumps. Because nothing says ’healthy market’ like a side of reckless gambling.

If these catalysts align, TAO could slice through $450 resistance like a hot knife through butter. Or crash spectacularly. Welcome to crypto.

Ecosystem update turns out positive

The market sentiment for TAO has remained bullish following the implementation of its dTAO upgrade, which essentially gave Bittensor network users the ability to vote, improving governance efficiency.

This upgrade included the introduction of new tokens known as Alpha Tokens, which are not traded on the secondary market but can be swapped only for TAO.

Source: CoinMarketCap

This has added to TAO’s utility, which is evident in its past month’s rally of 66%, according to CoinMarketCap. The community has since maintained its bullish expectations for the asset.

CoinMarketCap’s community sentiment shows that 83% of 57,500 TAO holders expect the asset to rally.

How will this impact TAO fundamentals?

This upgrade has been instrumental for several key reasons.

Since the launch, there has been a growing demand for TAO, as it has become the only way to purchase the Alpha Tokens needed to participate in voting activities.

Source: Blockwork

The implication is that as the need for these Alpha Tokens increases for governance, it directly contributes to TAO’s demand.

This demand has been followed by a constant issuance of TAO to the market, which is now nearing a new all-time high of 8 million.

Source: Blockwork

Interestingly, this issuance was met with growing staking activity on the network. Currently, approximately 6 million TAO has been staked.

Staking is an approach where users lock their assets for a certain duration, which earns them a reward for doing so.

Impact on the chart

On the chart, TAO appears to be aiming for a major price rally as market sentiment shifts. AMBCrypto noted some key levels on the chart using the Fibonacci retracement line.

Currently, TAO is at a critical juncture, with a resistance level at $389.6, which is one of the key levels it needs to overcome. Leveling higher would take the asset to its nearest targets of $458 and then trade higher to $526.

Source: TradingView

It’s important to note that at each level marked on the chart, the price above could act as a resistance level, forcing a pullback of the asset and allowing it to drop lower.

If more ecosystem updates turn out positive like this one, it could carry the momentum, trading into higher levels on the chart.