Bittensor's TAO climbs 25% five-day run, eyes $300 resistance

Key takeaways

• On Monday, Bittensor moved higher, pushing its five-day advance to roughly 25%.
• A rise in TAO's social dominance came alongside fresh interest in AI tokens and the debut of the Buttensor meme coin on Solana.
• Open interest in TAO hit a three-month peak of $428.57 million, pointing to increased derivatives activity.

Bittensor (TAO) was in positive ground Monday, continuing a five-day rally that has brought gains of about 25%.

Last week, the AI-focused token added 16%, then climbed a further 12% on Sunday. TAO now stands at a two-month high, with buyers aiming to break through the psychological barrier at $300.

Social chatter around Bittensor is also on the up, buoyed by renewed enthusiasm for AI-linked cryptocurrencies and by the introduction of a similarly named meme coin on Solana.

Meme coin Buttensor draws eyes to TAO

On Monday, a parody token called Buttensor (BUTT) went live on Raydium, a decentralized exchange built on Solana.

The meme coin's arrival came a day after Raydium officially began offering TAO trading. BUTT was then paired with TAO.

Under the meme coin's tokenomics, transaction fees are used to automatically buy TAO and distribute those tokens to BUTT holders. This setup links speculative trading of the meme coin to demand for Bittensor's native token.

Still, how long this buying pressure lasts hinges on ongoing trading and retail enthusiasm for BUTT.

The launch of ChatGPT-6 Astra has also overlapped with a resurgence in demand for AI-focused cryptocurrencies.

According to Santiment, TAO's social dominance reached 0.05% on Thursday after Astra's release. That figure has since climbed to 0.12%, with Buttensor adding to the online chatter.

Social dominance tracks an asset's portion of crypto-related discussions. An increase may signal rising investor attention, but heightened social activity can also go hand in hand with speculative moves.

Bittensor's derivatives market has also picked up as prices rallied. CoinGlass data indicate TAO open interest hit a three-month high of $428.57 million on Monday.

This rise suggests traders are opening new positions instead of merely closing existing ones during the advance.

Rising open interest together with a climbing price typically backs a bullish view. But a big accumulation of leveraged bets could boost volatility and liquidation danger if TAO reverses sharply.

Momentum builds for TAO near $300

Bittensor sits well above its 50-, 100-, and 200-day exponential moving averages, which are grouped around $220 to $236.

Being above these key indicators confirms the current uptrend's strength and offers multiple support zones in case of a pullback.

The MACD indicator is still above its signal line in positive ground, implying that upside momentum remains.

However, the daily RSI has hit 70, putting TAO at the edge of overbought territory and signaling that the rally may pause as traders lock in gains.

The round $300 mark is TAO's immediate hurdle. A confirmed daily close above $300 would strengthen the bullish case and could pave the way to $369, a peak seen on Sept. 13, 2025.

On the flip side, a rejection at $300 could spark a retreat to the 200-day EMA around $236. If that fails, the 100-day EMA at $222 and the 50-day EMA near $220 provide a deeper support area.

TAO's prospects stay bullish as long as it remains above the moving-average cluster, but overbought conditions make it susceptible to a short-term dip before another breakout try.