Bittensor (TAO) recently experienced a significant 12% surge in its value, captivating market participants after a period of considerable drawdown. This impressive rebound was primarily triggered by the resolution of a high-profile $28 million hack investigation, a development that swiftly restored investor confidence and funneled substantial new capital into the AI-focused cryptocurrency.
Restored Confidence Fuels Price Rally
The catalyst for TAO's recent ascent was a breakthrough in the investigation concerning a $28 million hack that occurred earlier in 2024. On-chain investigator ZachXBT's detailed post-mortem analysis publicly revealed that a former Bittensor employee was responsible for the attack, which affected 32 TAO holders. With a civil lawsuit now in motion, this clarity has significantly alleviated investor fears and transformed market sentiment. Community optimism soared, with the percentage of bullish investors jumping from 74% to 86%, signaling a strong belief in TAO's future trajectory and attracting a reported $25 million in fresh capital inflows into its derivatives market.
Technical Outlook and Market Momentum
This renewed bullish sentiment is palpable across the perpetual Futures market, where Open Interest has climbed by nearly 10% to $26 million, and a positive Funding Rate indicates a prevalence of long positions. Technically, TAO is now navigating a critical juncture, trading near the $447 resistance line. While this level could present a temporary hurdle, sustained buying pressure, supported by rising momentum indicators like the Relative Strength Index (RSI), suggests the possibility of a breakout. Should TAO successfully breach this resistance, it could target the next level at $476, with an ambitious yearly high of $588 within sight. However, spot investors have shown a tendency to take profits, leading to mild selling pressure that short-term holders could exacerbate.
