Bittensor (TAO) traded in positive territory on Monday, extending a steady five-day rally to approximately 25%. The artificial intelligence-focused token gained 16% last week before rising another 12% on Sunday, and has now reached a two-month high as buyers target a breakout above the psychological resistance level at $300.

Bittensor is a decentralized, open-source network that uses token incentives to coordinate a marketplace of machine-learning models, with participants earning TAO for contributing useful AI outputs. That positioning has made TAO one of the most prominent AI-sector tokens, and its price action frequently tracks broader shifts in attention toward artificial intelligence.

Social activity surrounding Bittensor is also climbing, supported by renewed interest in AI-related cryptocurrencies and the launch of a similarly named meme coin on Solana.

Buttensor meme coin draws attention to TAO

A Bittensor parody token named Buttensor (BUTT) launched on Raydium, a Solana-based decentralized exchange, on Monday, following Raydium's official launch of TAO trading on the platform a day earlier. BUTT was subsequently paired with TAO.

The meme coin's tokenomics direct transaction fees toward automatically purchasing TAO and distributing the acquired tokens to BUTT holders. This arrangement ties speculative activity around the meme coin to demand for Bittensor's native token, though the sustainability of that buying pressure will depend on continued trading activity and retail interest in BUTT.

The release of ChatGPT-6 Astra has also coincided with renewed demand for AI-focused cryptocurrencies. According to Santiment data, TAO's social dominance climbed to 0.05% on Thursday following Astra's release and has since risen to 0.12%, with the Buttensor launch contributing to the increase in online discussion.

Social dominance measures an asset's share of cryptocurrency-related conversations. A rising reading can indicate growing investor interest, although elevated social activity can also accompany speculative price movements.

Derivatives-market activity has strengthened in parallel with the price rally. CoinGlass data shows TAO open interest reached a three-month high of $428.57 million on Monday, indicating that traders are adding positions rather than simply closing existing contracts during the rally.

Rising open interest alongside an advancing price is generally read as supporting a bullish outlook. However, a large buildup in leveraged positions could increase volatility and liquidation risk if TAO suddenly reverses.

TAO momentum strengthens near $300

Bittensor trades comfortably above its 50-day, 100-day, and 200-day exponential moving averages, which are clustered between roughly $220 and $236. Its position above these major indicators confirms the strength of the current uptrend and provides several potential support levels in the event of a correction.

The Moving Average Convergence Divergence indicator remains above its signal line in positive territory, suggesting upside momentum is intact. However, the Relative Strength Index has reached 70 on the daily chart, placing TAO at the threshold of overbought conditions and signaling that the rally could temporarily cool as traders take profits.

The psychological $300 level is TAO's immediate resistance. A confirmed daily close above $300 would reinforce the bullish outlook and could open the path toward $369, a high recorded on Sept. 13, 2025. Conversely, rejection from $300 could trigger a pullback toward the 200-day EMA near $236. Should that support fail, the 100-day EMA at $222 and the 50-day EMA around $220 form a deeper demand zone.

TAO's outlook remains bullish while it trades above the moving-average cluster, but overbought conditions leave the token vulnerable to a short-term correction before another breakout attempt.

Source: CoinJournal