TAO’s price stands at $623.78, reflecting a notable 9.8% increase in the last 24 hours. This rally is not just a temporary uptick; it comes with strong market momentum, as trading volume surged by over 40%, reaching $470.79 million.

TAO’s recent price action has placed it in a favorable position, particularly after breaching a two-month trendline resistance. The current price range between $551.98 and $638.58 demonstrates considerable volatility, indicating a growing potential for TAO to revisit its all-time high (ATH) of $767.68. The pressing question on traders’ minds is whether TAO can continue this upward momentum and break the psychological $1000 barrier.

AI Tokens Lead the Charge, with TAO Benefiting from New Integration

The broader cryptocurrency market, especially altcoins, has been on an impressive rally. As Bitcoin’s dominance drops to 57%, altcoins have found an opportunity to capitalize on Bitcoin’s stagnant price movements. Among these, AI-focused tokens have been leading the way, with Bittensor (TAO) emerging as one of the strongest performers, boasting a 20% surge.

This boost can largely be attributed to TAO’s recent integration with the Ethereum Virtual Machine (EVM). This compatibility marks a significant milestone for Bittensor, as it allows the network to leverage Ethereum’s well-established infrastructure. This integration enhances TAO’s scalability, transaction speed, and overall functionality, driving increased investor confidence.

Breakout Confirmation and Price Target

The daily chart for TAO reveals a strong breakout above the descending resistance trendline, signaling renewed bullish momentum. This move has led expectations that TAO could target the next major resistance level at $1000. A rally of around 60% from its current price would bring TAO closer to this psychological level, marking a major milestone for the cryptocurrency.

Supporting this bullish thesis, the Parabolic SAR indicator has confirmed the breakout, with the dots now positioned below the price candles, signaling continued upward momentum. The Average Directional Index (ADX), currently at 16.94, suggests the trend is still developing, but it has gained strength following the breakout. Moreover, the Standard Deviation at 39.5 indicates heightened volatility, which is often associated with strong price movements.

Support Levels and Potential Pullback

While the outlook for TAO appears bullish, there are important levels to watch for signs of potential pullback or consolidation. A key support level to monitor is $450, which was previously a resistance level. If TAO holds above this support, the path to new highs could remain open. However, failure to maintain this level could signal a retreat to lower support levels, potentially invalidating the bullish setup.

TAO’s Token Release Schedule and Long-Term Growth

Looking ahead, the steady release of TAO tokens from its ecosystem is expected to drive gradual market adoption without overwhelming the supply. The token emission curve reveals that a significant portion of TAO’s supply will enter circulation starting in 2025, continuing until 2027. This controlled distribution strategy helps minimize immediate inflation and positions Bittensor for sustainable long-term growth.

As the ecosystem evolves, TAO’s token release will likely align with key milestones aimed at scaling operations and rewarding contributors, further solidifying the network’s position in the market.

Strong Buying Pressure and Bullish Sentiment

The long/short ratio for TAO has been rising, reflecting growing bullish sentiment. With the ratio above 1.10, indicating stronger buy pressure than sell volume, TAO appears to be gaining momentum. Recent trends suggest that traders are positioning themselves for further upside, and the increased buying activity supports the possibility of continued price growth in the coming weeks.

In conclusion, with strong technical indicators, robust market support, and promising integration with Ethereum, TAO appears well-positioned for further growth. While a rally toward $1000 is not guaranteed, the current trends suggest that the cryptocurrency may be on its way to test this critical resistance level.