Bittensor [TAO] gains 12% as $28 mln hack mystery clears – More gains?

Key Takeaways

What triggered TAO’s recent 12% gain?

TAO surged 12% after a $28 million hack investigation was resolved, restoring investor confidence and driving $25 million in fresh capital inflows.

What’s next for TAO’s price?

TAO is near $447 resistance; a successful breakout could push it toward $476, with a potential yearly high of $588.

Bittensor [TAO] recorded a 12% gain in the past 24 hours after an investigation into a $28 million hack linked to the project was resolved, restoring investor confidence.

With $25 million added to its derivatives market, TAO now sits just a resistance away from reclaiming its previous year all-time high (ATH).

The leading AI token started gaining traction again after suffering a 44% drawdown in recent weeks.

Over the past day, the asset rose 12% as market participants renewed their interest, with most investors betting on further upside.

Investigation boosts investor outlook

A recent update on the investigation into TAO’s $28 million hack in 2024 appears to have fueled renewed optimism.

A detailed post-mortem analysis by on-chain investigator ZachXBT, shared publicly on X, revealed that a former Bittensor employee was responsible for the attack that affected 32 TAO holders.

With a civil lawsuit now underway, this positive development has been reflected in TAO’s recent price recovery.

Source: CoinGlass

Community sentiment mirrors this bullish shift. On the 17th of October, around 74% of investors were bullish on TAO.

That number has since climbed to 86%, signaling a growing likelihood of more capital flowing into the asset.

Perpetual market remains strong

Investors in the perpetual Futures market continue to maintain a bullish stance. According to CoinGlass, Open Interest—representing the total number of unsettled derivative contracts—rose 9.95% to $26 million.

The Funding Rate has also stayed positive, suggesting most new contracts are long positions as traders anticipate further price appreciation.

Source: CoinGlass

However, Spot investors have been taking profits consistently over the past two days, contributing to mild selling pressure.

So far, total sell-offs have reached $5.25 million, hinting that short-term holders could trigger additional downward movement.

New high in sight

Technical analysis offers a clearer view of TAO’s next move. Based on Fibonacci retracement levels, TAO is currently trading near the $447 resistance line, a zone that could temporarily push the asset lower.

Failure to break above this level might lead to a retest of lower support zones. However, sustained bullish momentum could propel TAO to the next resistance level at $476.

Source: TradingView

This zone remains the final hurdle before TAO can set a new yearly high of $588.

Indicators such as the Relative Strength Index (RSI) show rising momentum, suggesting that TAO may soon break through its immediate resistance level.