The price of Bittensor (TAO) aims for the milestone of 500 USD as the demand for subnets surges.

As of Wednesday's session, Bittensor (TAO) recorded an increase of over 7%, benefiting from a strong wave of demand for subnets within the ecosystem. In just the past 24 hours, the market capitalization of the subnet has increased by 11%, while the open interest of the TAO futures contract surged by 19% — clearly reflecting the growing interest from investors.

From a technical perspective, TAO has broken the symmetrical triangle pattern on the 4-hour chart, signaling that the current uptrend still has plenty of room to expand, especially as capital continues to flow into AI-related assets.

The subnet is attracting attention

Bittensor is a blockchain network dedicated to machine learning models – called subnets – operating based on the native token named alpha token. In the past 24 hours, the market capitalization of the subnets has increased by 11.7%, reflecting the booming demand for specialized AI models and intelligent agents (AI agents).

Notably, out of a total of 7.23 million TAO tokens being staked on the network, as much as 19.72% (equivalent to 1.43 million tokens) have been swapped for alpha tokens. This indicates that users are willing to accept a higher level of risk to access potential subnets.

Distribution of TAO staking | Source: TaostatsIn summary, the trend of capital flow and interest shifting towards subnet and alpha token is driving network activity upward, opening up expectations for strong growth in the near future.

Breakthrough towards the milestone of 500 USD

On the 4-hour time frame, Bittensor (TAO) has broken out of a symmetrical triangle pattern and is heading towards the Pivot R1 level at 451 USD. The price breaking above the red Supertrend line is also a signal that the bullish trend is gradually returning.

If TAO closes firmly above the 451 USD level, the recovery momentum may extend to the Pivot R2 region at 499 USD.

Notably, the inflow of funds from retail investors is increasing sharply. Data from CoinGlass shows that the open contract (OI) of the TAO futures contract has risen by 19.19% in the past 24 hours, reaching 333.12 million USD — reflecting an increase in leverage usage and an expansion of long positions in the market.

Bittensor derivatives data | Source: CoinGlassTechnical signals on the 4-hour chart also reinforce the bullish scenario. The Stochastic RSI indicator shows a bullish crossover and enters the overbought territory, while the RSI stands at 69, indicating that buying pressure is dominant and is just a short distance away from the overbought zone. As the RSI approaches the 80 mark, the risk of a pullback may arise.

Daily TAO/USDT chart | Source: TradingViewOn the contrary, the 400 USD zone continues to play a key support role for TAO in the event of a reversal.

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