Bittensor (TAO) Gains Momentum After New Feature Release: What’s Next?

Date: Tue, Nov 26, 2024, 05:56 AM GMT

In the cryptocurrency market, AI tokens such as RENDER, NEAR, and GRT have already kicked off impressive rallies this week. Meanwhile, Bittensor (TAO), which had been consolidating around the $530 range, is now in the spotlight after surging over 4% in the last 24 hours, currently trading at $552.

New Feature Release:

A key driver behind TAO’s recent upward momentum is the release of a new feature by the Bittensor team on November 25: Permissioned EVM (Ethereum Virtual Machine). This innovative feature allows businesses to leverage blockchain technology while maintaining control and reducing the risk of fraud.

Source: docs.bittensor.com/chain-rel-notes

The team announced:"EVM features on the mainnet will be available only after the Bittensor 8.4.0 release. In the meantime, users can utilize the mainnet node at: wss://evm.chain.opentensor.ai to deploy smart contracts on the mainnet."For now, permissioned deployment ensures that only white-listed parties can deploy smart contracts on both mainnet and testnet.

This feature is expected to bring several benefits to the ecosystem, including:

• Easier development for projects and businesses.
• More users entering the network.
• Increased liquidity within the ecosystem.
• Enhanced features to strengthen the platform.

Technical Outlook:

Bittensor (TAO) has been gaining strength, fueled by its recent breakout from a descending channel pattern around the $538 level. This breakout signals a shift in momentum, as TAO had previously been trapped in a downward trend for weeks. The breakout was followed by an upward surge, propelling the price to $554, where it is currently consolidating.

• Resistance Levels: The next immediate resistance lies at $580, followed by a stronger hurdle at $600. If TAO manages to break above the upper downtrend line of the symmetrical triangle pattern and surpass the critical resistance zone of $621, it could further solidify bullish sentiment and pave the way for an upside rally.
• Support Levels: On the downside, $538 (the previous breakout level) now acts as a strong support, with $538 serving as another key level to watch. A breakdown below these levels might invalidate the bullish setup.
• RSI Analysis: The RSI on the 4-hour chart is currently at 64, indicating bullish momentum but still within a healthy range. This suggests room for additional upside without the risk of an immediate overbought condition.

What’s Next?

If TAO holds its gains and successfully clears the $600-$621 resistance zone, it could trigger a stronger rally, with potential targets in the $650-$680 range. The breakout from the descending channel and the symmetrical triangle formation are key bullish patterns that traders are closely monitoring. Combined with the positive fundamentals from the Permissioned EVM release, TAO seems poised for further growth in both adoption and price.

However, traders should keep an eye on market conditions and volume for confirmation of the breakout before entering new positions. Proper risk management remains essential.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

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