Bittensor's TAO has climbed roughly 25% over five days and is testing the psychological $300 level, alongside rising social buzz tied to a parody meme coin and renewed AI-token interest. Open interest in TAO derivatives has hit a three-month high, while daily-chart momentum indicators show the token nearing overbought territory just below resistance.
Bittensor (TAO) extended its five-day rally to approximately 25% on Monday, reaching a two-month high as buyers target a breakout above the psychological $300 level. The token gained 16% last week before rising another 12% on Sunday.
Buttensor meme coin lifts social buzz around TAO
A Bittensor parody token named Buttensor (BUTT) launched on Raydium, a Solana-based decentralized exchange, on Monday, a day after Raydium's official launch of TAO trading on the platform. 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, tying speculative activity around BUTT to demand for Bittensor's native token. However, the sustainability of this buying pressure depends on continued trading activity and retail interest in BUTT.
Renewed demand for AI-focused cryptocurrencies has also coincided with the release of ChatGPT-6 Astra. Santiment data shows TAO's social dominance climbed to 0.05% on Thursday following Astra's release and has since risen to 0.12%, with Buttensor's launch contributing to the increase in online discussion.
Open interest and momentum point toward a $300 test
TAO open interest reached a three-month high of $428.57 million on Monday, according to CoinGlass data, indicating traders are adding new positions rather than closing existing ones during the rally. Rising open interest alongside an advancing price generally supports a bullish outlook, though a large buildup in leveraged positions could raise volatility if TAO reverses.
Bittensor trades above its 50-day, 100-day, and 200-day exponential moving averages, clustered between approximately $220 and $236, confirming the strength of the current uptrend. The MACD indicator remains above its signal line in positive territory, but the RSI has reached 70 on the daily chart, placing TAO at the threshold of overbought conditions.
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. Rejection from $300, however, could trigger a pullback toward the 200-day EMA near $236, with the 100-day EMA at $222 and the 50-day EMA around $220 forming a deeper support zone.
Source: CoinJournal
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