Decentralized AI project Bittensor has surged to the top of the weekly gainers’ list, benefiting from Nvidia’s stock increase.

Bittensor’s Impressive Performance

Bittensor (TAO) topped the charts this week as the biggest gainer among the top 100 cryptocurrencies with a solid 31% price jump. At the time of writing, TAO ranked 41st by market cap, which stood at over $2.51 billion. Its price is up 8.87% in the last 24 hours, trading at $313.59.

TAO’s recent climb can be credited to Nvidia Corp’s stock rallying 13.5%, closing at $119.08 on September 13. This surge pushed Nvidia’s market cap to $2.92 trillion. With Nvidia stocks up 140.5% so far this year, the momentum has lifted TAO and other AI-focused cryptocurrencies, pushing the AI-crypto market cap up by 0.8% in the last 24 hours. The total market cap for AI tokens now stands at $23.9 billion.

Correlation Between AI Tokens and Nvidia Stock

AI tokens typically move in tandem with Nvidia’s stock. On September 4, tokens like Artificial Superintelligence Alliance (FET) and Render (RNDR) experienced double-digit losses after a 9.5% dip in Nvidia’s stock. Earlier in the year, these tokens rallied following Nvidia’s strong Q4 2023 earnings, and similar enthusiasm built up ahead of its Q2 2024 report.

TAO Primed for Further Gains

The 1D TAO/USD price chart from September 14 signals a strong bullish trend, indicating potential for upward movement. The Moving Average Convergence Divergence (MACD) has crossed above its signal line, displaying longer green bars on the histogram—both positive signs for upward momentum.

Moreover, the Relative Strength Index (RSI) currently stands at 59, indicating the asset is in a healthy trading zone, still far from overbought levels. This provides room for potential growth without immediate concerns of a pullback due to overvaluation, painting a bullish outlook for the token’s short-term price trajectory.

Market Sentiment and Predictions

Market observers are echoing a similar bullish sentiment. According to analyst Marco Polo, TAO is currently ranging between $268 and $357. He expects a powerful upward move once TAO breaks above the $357 mark.

“Break $400 and it’s off to the races. I believe there’s a good chance $TAO could top around 3-5k depending on our liquidity shift from $BTC and the overall AI narrative.”

Meanwhile, analyst Ramon shares a similarly bullish outlook but identifies a slightly higher key resistance around the $400 mark. Ramon predicts that TAO could reach the $3,000 to $5,000 range in this bull run, depending on liquidity moving out of Bitcoin and the strength of the overall AI narrative.

For more updates and detailed analysis on the latest cryptocurrency trends, visit Global Crypto News.

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