Key Takeaways
What triggered TAO’s recent 12% gain?
TAO surged 12% after a $28 million hack investigation was resolved, restoring investor confidence and driving $25 million in fresh capital inflows.
What’s next for TAO’s price?
TAO is near $447 resistance; a successful breakout could push it toward $476, with a potential yearly high of $588.
Bittensor [TAO] recorded a 12% gain in the past 24 hours after an investigation into a $28 million hack linked to the project was resolved, restoring investor confidence.
With $25 million added to its derivatives market, TAO now sits just a resistance away from reclaiming its previous year all-time high (ATH).
The leading AI token started gaining traction again after suffering a 44% drawdown in recent weeks.
Over the past day, the asset rose 12% as market participants renewed their interest, with most investors betting on further upside.
Investigation boosts investor outlook
A recent update on the investigation into TAO’s $28 million hack in 2024 appears to have fueled renewed optimism.
A detailed post-mortem analysis by on-chain investigator ZachXBT, shared publicly on X, revealed that a former Bittensor employee was responsible for the attack that affected 32 TAO holders.
With a civil lawsuit now underway, this positive development has been reflected in TAO’s recent price recovery.
Source: CoinGlass
Community sentiment mirrors this bullish shift. On the 17th of October, around 74% of investors were bullish on TAO.
That number has since climbed to 86%, signaling a growing likelihood of more capital flowing into the asset.
Perpetual market remains strong
Investors in the perpetual Futures market continue to maintain a bullish stance. According to CoinGlass, Open Interest—representing the total number of unsettled derivative contracts—rose 9.95% to $26 million.
The Funding Rate has also stayed positive, suggesting most new contracts are long positions as traders anticipate further price appreciation.
Source: CoinGlass
However, Spot investors have been taking profits consistently over the past two days, contributing to mild selling pressure.
So far, total sell-offs have reached $5.25 million, hinting that short-term holders could trigger additional downward movement.
New high in sight
Technical analysis offers a clearer view of TAO’s next move. Based on Fibonacci retracement levels, TAO is currently trading near the $447 resistance line, a zone that could temporarily push the asset lower.
Failure to break above this level might lead to a retest of lower support zones. However, sustained bullish momentum could propel TAO to the next resistance level at $476.
Source: TradingView
This zone remains the final hurdle before TAO can set a new yearly high of $588.
Indicators such as the Relative Strength Index (RSI) show rising momentum, suggesting that TAO may soon break through its immediate resistance level.
