Bittensor [TAO] gains 12% as $28 mln hack mystery clears – More gains?

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.

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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.

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.

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.

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.