Based on the current chart for $TAO
/USDT, we’re seeing some interesting movement. After a bit of a rough patch, the price is starting to stabilize around the $165 mark. It looks like the market is catching its breath, and for those watching closely, there are a few solid reasons to stay optimistic about where Bittensor is headed.
a breakdown of why the outlook is turning positive:
Fundamental Growth Points
The Scarcity Factor: TAO has a hard cap of 21 million tokens, exactly like Bitcoin. With the recent halving, the daily issuance of new tokens has dropped significantly. When you pair a shrinking supply with the growing demand for AI, the math starts to look very favorable for long-term holders.
Decentralized AI Narrative: As big tech companies face more scrutiny over data privacy and centralized control, Bittensor stands out as the primary alternative. It’s not just a coin; it’s a global, decentralized network for machine intelligence that anyone can contribute to or use.
Institutional Backing: We’re seeing continued conviction from major players like Digital Currency Group. When institutional money treats a project as a "core holding" alongside Bitcoin and Ethereum, it usually signals a level of maturity and stability that retail-only projects lack.
Subnet Utility: The network is shifting toward a model where rewards are tied to actual utility. This means subnets providing real-world AI services—like image generation or data analysis—are driving the ecosystem’s value, moving the project away from pure speculation and toward real-world use.
Technical Outlook
Oversold Rebound: Looking at the chart, the RSI has been hovering near the "oversold" territory. Historically, when TAO hits these levels, it often leads to a technical bounce as buyers step in to pick up what they see as a discount.
Key Support Levels: The $161.9 low from the last 24 hours seems to be holding steady. As long as we stay above this zone, the path toward testing the previous resistance levels near $170 and $175 remains open.