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TAO surged as much as 13% on April 18, reclaiming a critical support level and boosting its market capitalization to over $2.2 billion. The rally followed reports that Nvidia plans to maintain its presence in China despite newly imposed U.S. export restrictions.

TAO Price Surge and Increased Trading Volume

The cryptocurrency Bittensor (TAO) reached an intraday high of $259.2 during Asian trading hours, with daily trading volume increasing by over 42% to surpass $113 million. This sharp rise signals a renewed interest among traders and investors in the project.

The gains came after Nvidia CEO Jensen Huang visited Beijing and met with Chinese trade officials. During his visit, Huang emphasized Nvidia’s commitment to the Chinese market, stating the company would “spare no effort” to develop compliant products and continue serving the region.

Nvidia’s Role Amid U.S. Export Restrictions

The developments follow the U.S. government’s decision to block exports of Nvidia’s H20 chip to China. This chip was designed to comply with earlier export restrictions. The reversal could cost Nvidia an estimated $5.5 billion in revenue, with its stock price already falling 7% as of Wednesday.

In response to Nvidia’s reaffirmed commitment to China, the broader AI-related cryptocurrency market experienced a positive reaction, climbing nearly 4% in the last 24 hours. Alongside TAO, other AI-focused cryptocurrencies such as Near Protocol (NEAR), Internet Computer (ICP), Render (RNDR), and Arweave (AR) saw gains ranging from 3% to 9%.

AI Tokens’ Correlation with Nvidia

Many AI-focused blockchain projects closely track Nvidia-related developments, given the company’s pivotal role in powering the AI infrastructure that many of these platforms rely on. Analysts believe Nvidia’s ability to adapt to ongoing trade restrictions will be crucial for its long-term success.

“Companies globally cannot predict what comes tomorrow when it comes to tariffs. For that reason, they are now scrambling to rework once-reliable supply chains. While many companies, such as Nvidia, will look to manufacture in the U.S., they will also explore other jurisdictions to optimize production and protect profits,” commented Komodo CTO Kadan Stadelmann.

TAO Price Analysis

TAO’s recent price rally has been accompanied by a significant surge in open interest, which jumped more than 20% over the past 24 hours. Additionally, social sentiment around TAO turned positive, as shown by Santiment data.

On the 1-day TAO/USDT chart, the token reclaimed the $218 support level, a critical price point that has historically acted as a key support zone. Further analysis suggests that TAO is breaking out of a multi-month falling wedge pattern, a bullish reversal signal.

Key Technical Indicators

  • RSI: TAO’s Relative Strength Index (RSI) has climbed above 55, indicating growing bullish momentum.
  • MACD: The MACD lines have formed a bullish crossover, further supporting the upward trend.
  • Chart Patterns: TAO has also formed a double-bottom pattern on the weekly chart, often seen as a signal for trend reversal.

Based on these indicators, the initial price target for TAO is $470, an 82% increase from its current level. Some analysts have painted an even more optimistic outlook, suggesting the token could reach $760 as the next major resistance level, with a long-term target of $1,340 if strong bullish momentum persists.

Broader Implications for Investors

The developments surrounding Nvidia and its impact on AI-related cryptocurrencies like TAO emphasize the interconnectedness of the tech and blockchain industries. As Nvidia navigates ongoing trade restrictions, its actions could have a ripple effect on the broader AI and cryptocurrency markets.

Investors should monitor Nvidia’s strategic decisions, as well as key technical levels for projects like TAO, to make informed decisions. While the current outlook appears bullish, external factors such as regulatory changes and market sentiment could influence price movements.

Disclosure: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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