Bittensor’s TAO extended its advance on Monday, bringing its five-day gain to roughly 25% as traders watched for a break above the $300 mark. The AI-focused token rose 16% last week and added another 12% on Sunday, reaching a two-month high.
Interest in the token has increased alongside renewed attention toward artificial intelligence-related cryptocurrencies. Online discussion has also been supported by the launch of Buttensor (BUTT), a similarly named meme coin introduced on Solana.
Buttensor links speculative activity to TAO
BUTT launched on Raydium on Monday, one day after the Solana-based decentralized exchange began supporting TAO trading. The meme coin was subsequently paired with Bittensor’s token.
According to the project’s tokenomics, transaction fees are used to automatically purchase TAO, with the acquired tokens distributed to BUTT holders. That mechanism creates a potential connection between trading activity in the meme coin and demand for TAO, although its impact depends on continued liquidity and retail interest in BUTT.
The launch of ChatGPT-6 Astra has also coincided with increased interest in AI-related crypto assets. Santiment data shows that TAO’s social dominance rose from 0.05% on Thursday to 0.12%. The metric measures an asset’s share of cryptocurrency-related online conversations and can signal rising attention, although it may also reflect speculative activity.
Open interest reaches a three-month high
TAO’s derivatives market has expanded during the rally. CoinGlass data shows open interest reached $428.57 million on Monday, the highest level in three months. The increase suggests traders are adding positions rather than simply closing existing contracts.
Higher open interest alongside a rising price can support the bullish trend, but it also increases the risk of volatility and liquidations if the token reverses sharply.
$300 becomes the key technical test
TAO is trading above its 50-day, 100-day and 200-day exponential moving averages, which are grouped between approximately $220 and $236. The Moving Average Convergence Divergence indicator remains above its signal line and in positive territory, indicating that upward momentum is still in place.
However, the token’s daily Relative Strength Index has reached 70, placing it near overbought territory. That could leave TAO vulnerable to a short-term pullback as traders take profits.
A confirmed daily close above $300 would strengthen the bullish case and could open a path toward $369, a high recorded on September 13, 2025. Rejection at $300 could instead send TAO toward the 200-day EMA near $236. If that level fails, support would next appear around the 100-day EMA at $222 and the 50-day EMA near $220.
For now, the broader outlook remains positive while TAO holds above its moving-average cluster, although elevated momentum indicators suggest that a pause may come before another breakout attempt.
