Bittensor Finally Flips $300 — Why Did It Surge and Will it go Higher?

Bittensor finally broke above $300 for the first time since January. The key event occurred on Friday, when it surged from $294 to $310.

A closer look at the 1-day chart shows that the latest triumph above this psychological barrier was short-lived. Nonetheless, it took several days of attempts before flipping.

The first trial occurred on Monday, when it surged to $300 before retracing. The rejection led to a significant decline over the next two days. However, another attempt took place on Thursday, yielding the same result as Monday’s.

The decisive flip on Friday saw the asset climb to its highest level since December. Following its peak, TAO shed over 8%.

Nonetheless, it currently prints a green candle on Saturday as buying resumed. However, many wonder why there is a price hike.

Regarding fundamentals, the biggest affecting Bittensor is the commendation it received from the Nvidia CEO.

A few days ago, the projects conducted a training run on Subnet 3 in which participants used distributed excess compute to train a Llama model. Speaking in an interview, Jensen Huang commended the milestone, saying, “Our modern version of Folding@home.”

While this is not a direct endorsement of Bittensor, investors took the comment as a sign in goodwill, resulting in a significant price increase. Nonetheless, the chart shows it has been rising for an extended period.

Interestingly, over the last few days, AI-linked projects have received notable attention. TAO was not the only recipient of this newfound attraction. Near Protocol was another recipient, resulting in a massive uptrend.

Nonetheless, the 1-day chart also paints a technical picture that suggests why the altcoin surged.

Bittensor V-Pattern

The 1-day chart shows the altcoin was in a downtrend from January to February. However, in the middle of the previous month, it saw notable short-lived buying pressure.

It became rangebound for an extended period before breaking out during the second week of March. The just-described movement forms a V, a traditionally bullish pattern, and the pullback confirmed it.

Focusing on its confirmation, this normally appears at the neckline. Although TAO slipped below this line, it reclaimed it, leading to the subsequent 76% surge.

Interestingly, this technical basis also explains why the altcoin struggled to break $300. Zooming out shows that the January-February decline began after several attempts to reach the mark.

Before the latest breakout, the asset also experienced notable rejections at this key mark. It would appear the bulls have yet to fully erase the selling congestion at $300, as TAO faced rejection after peaking at $310.

The tell-sign of flipping will be a new candle above it. As of Saturday, the altcoin has failed to achieve this. It remains to be seen if it will attempt $300 again soon. However, if it fails again, the asset may experience another significant decline in the coming days.

Aside from previous price movements, indicators are currently flipping negative. It is worth noting that the relative strength index was above 70 as of Mar. 19, indicating overbought conditions. The recent decline is in response to this trend, and per the metric, TAO is due for further corrections.

Additionally, the moving average convergence divergence prints sell signals at the time of writing. The 12-EMA halted its uptrend a few days ago and is currently declining, indicating an impending bearish crossover.

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