TAO, the cryptocurrency associated with Bittensor, saw a significant rally of up to 13% on April 18th. This surge helped the token reclaim a crucial support level and pushed its market cap back above $2.2 billion. The catalyst for this price movement was reports indicating that Nvidia, a major chipmaker, intends to maintain its presence in China despite new export restrictions imposed by the U.S.
During Asian trading hours, TAO reached an intraday high of $259.2, with daily trading volume spiking over 42% to more than $113 million. This surge in trading activity signaled renewed interest from traders in the cryptocurrency.
The positive momentum in TAO followed news of Nvidia CEO Jensen Huang’s visit to Beijing, where he met with Chinese trade officials. During the visit, Huang reassured the company’s commitment to the Chinese market, stating that Nvidia would spare no effort to comply with regulations and serve the region. This commitment comes in the face of the U.S. blocking exports of Nvidia’s H20 chip to China, a move that could potentially cost the company billions in revenue.
The broader AI market also reacted positively to Nvidia’s reaffirmed commitment to China, with a nearly 4% increase in value. Other top AI coins like Near Protocol, Internet Computer, Render, FET, and Arweave also posted gains ranging from 3.1% to 9%.
Industry analysts emphasize the importance of Nvidia adapting to navigate the impact of ongoing trade restrictions. Komodo’s CTO, Kadan Stadelmann, highlighted the need for companies like Nvidia to diversify their supply chains across multiple jurisdictions and nurture strong relationships with global leaders, especially in key markets like China.
In terms of price analysis, TAO’s recent rally has been perceived as a bullish signal by traders. The token has reclaimed the $218 support level on the 1-day TAO/USDT chart, a level that has proven significant in the past. Technical analysis suggests that TAO may be forming a double-bottom pattern on the weekly chart, signaling a potential trend reversal. A breakout above the pattern’s neckline could set a medium-term price target of $1,330.
On the daily chart, TAO appears to be breaking out of a multi-month falling wedge setup, indicating a bullish reversal. With momentum backing the breakout and key indicators like RSI and MACD signaling positive movement, analysts predict an initial target of $470 for TAO, representing an 82% increase from its current level.
Some traders have set even more ambitious price targets for TAO, with predictions of reaching $760 as the next major psychological resistance and a secondary target of $1,340 if bullish momentum persists. It is important to note that this article does not constitute investment advice and is intended for educational purposes only.