The price of Bittensor (TAO) is rising to the sky amidst the returning wave of retail investors.

As of the time of writing on Wednesday, Bittensor (TAO) is still holding steady around the 460 USD mark, maintaining a 3% increase recorded from the previous day. This Token in the field of Artificial Intelligence (AI) is showing signs of recovery, as retail investor money returns and buying pressure in the market becomes increasingly stronger.

Retail demand is recovering, expectations for continued growth

The sentiment of traders towards Bittensor in the derivatives market has quickly recovered after the unexpected drop on Friday.

Data from CoinGlass shows that the open contract (OI) of the TAO futures contract has increased to 338.59 million USD, corresponding to a 28% increase in the past 24 hours. This double-digit increase reflects a notable expansion in the notional value of open contracts — a sign that investors are becoming bolder in accepting risks.

Bittensor derivative data | Source: CoinGlassAt the same time, trading volume also surged nearly 59%, reaching 2.34 billion USD, further reinforcing the view that the market is leaning towards the bulls.

The rise of Bittensor enters an important turning point

On the technical chart, Bittensor (TAO) is maintaining a strong position as it trades above the 50, 100, and 200-day moving averages — at 347 USD, 350 USD, and 359 USD respectively — indicating that the upward trend is still being reinforced.

The recovery momentum of this AI token was boosted after the CEO of Digital Coin Group (DCG), Yuma Barry Silbert, announced a key investment fund focused on tokens within the Bittensor subnet ecosystem. As a result, TAO surged to the 50% Fibonacci retracement level at 458 USD, from a peak of 748 USD on December 6 to a low of 167 USD on April 7.

Notably, this price area once served as an important support zone at the end of January 2025, and has now become a strong resistance level that needs to be overcome. If TAO can close firmly above this level, the next upward momentum may target the Fibonacci levels of 61.8% and 78.6%, corresponding to 526 USD and 624 USD.

Daily TAO/USDT chart | Source: TradingViewTechnically, the signals on the daily timeframe indicate that the upward momentum of TAO is clearly being reinforced. The RSI indicator has reached 72, deep into the overbought zone – a sign that demand remains high. Meanwhile, the MACD line continues to rise and moves along with the signal line, further reinforcing the bullish momentum.

However, in a correction scenario, if TAO weakens from the 458 USD range, the price may retrace to test the 38.2% Fibonacci level around 389 USD – a range that coincides with the important psychological barrier of 400 USD, which the bulls need to defend to maintain the upward trend.

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