Bittensor’s native token TAO is approaching the psychologically important $200 mark and is currently trading at around $196. The AI blockchain is benefiting from growing interest in its subnet ecosystem, which now comprises over 120 active subnetworks for various AI applications – from code generation to GPU computing.
Technical recovery after December halving
Following the halving event in December, which reduced daily token emissions, TAO is showing a remarkable technical recovery. The halving event, which takes place every two years, halved the rewards for miners and validators on the network, leading to a natural shortage of token supply. Over the past 24 hours, the price has fluctuated between $180 and $199, representing a daily gain of about $19. The market capitalization is around $1.88 billion.
Particularly noteworthy is the development of higher highs and lows since the pullback to $174.7. The price remains stable above the 20-day EMA at $184, which is considered a bullish signal in the short term. Trading volume has increased significantly in recent weeks, indicating increased institutional interest.
Subnet ecosystem drives fundamental strength
The growing number of active subnets underscores Bittensor’s practical relevance in the AI sector. These decentralized subnetworks enable specialized AI applications and create real value beyond pure speculation. Video analysis, machine learning, and GPU computing are just a few of the areas where the network is already being used.
Particularly noteworthy are subnets for language models, image recognition, and data analysis, which are already being used productively by several tech companies. The subnet system works according to a proof-of-intelligence mechanism, in which AI models are rewarded based on their performance. This creates a natural incentive for continuous improvement and innovation.
This development sets Bittensor apart from many other blockchain projects, as it involves the creation of concrete AI infrastructure that is actually used by developers and companies. Subnet participants can earn TAO tokens both by providing computing power and by validating AI models.
Critical resistance zone at $200
Technically, TAO is facing a decisive phase. The resistance at $199.8 acts as an immediate hurdle and has already been tested several times without being sustainably overcome. A sustained break above this level could pave the way for an expansion towards $220 to $260. The RSI indicator at 67 points signals solid demand without overheating, while the MACD indicator shows positive divergences.
The Fibonacci retracement levels indicate that if there is a break above $200, the next significant resistance level is at $238. Support is initially at $184 (20-day EMA) and below that at $177. However, a fall below the latter mark could trigger a correction towards $150 to $170.
Institutional adoption and partnerships
An important driver of TAO’s price performance is increasing institutional adoption. Several venture capital firms have recently announced investments in Bittensor-based projects, underscoring confidence in the long-term viability of the ecosystem. I
