• Bittensor extends its gains on Friday, rallying over 15% so far this week.
• Jensen Huang and Chamath Palihapitiya praise Bittensor’s decentralized AI milestone, boosting market sentiment.
• On-chain and derivatives data support further gains as trading volume and open interest are rising.

Bittensor (TAO) extends its gains trading above $289 on Friday, having surged more than 15% so far this week. The ongoing upside momentum was further boosted by the praise from Jensen Huang and Chamath Palihapitiya for Bittensor’s decentralized AI training milestone. Meanwhile, further strengthening of on-chain and derivatives data suggest bullish participation is building, hinting at further upside for TAO in the upcoming days.

Bittensor rallies as industry leaders back decentralized AI

Bittensor got attention during an interview in the All-In Podcast on Friday, where Chamath Palihapitiya highlighted the project’s latest decentralized AI training milestone. 

Palihapitiya said, “They managed to train a 4 billion parameter LLaMA model, totally distributed, with a bunch of people contributing excess compute,” and further added, “a pretty crazy technical accomplishment.”

NVIDIA CEO Jensen Huang responded positively to the concept, framing the AI market as a space where decentralized and proprietary models can coexist rather than compete.

“These two things are not A or B; it’s A and B,” Huang said. “There is no question about it.”

These comments align closely with Bittensor’s model, which incentivizes peer-to-peer compute sharing through TAO rewards, and the market responded positively, with the TAO price rallying nearly 5% as of writing on Friday.

Rising trading volume and open interest strengthen bullish participation

Santiment data indicates that the Bittensor ecosystem’s trading volume (the aggregate trading volume generated by all exchange applications on the chain) reached $677.06 million on Sunday, the highest level since November 7, and has been steadily increasing, rising to $521.92 million on Friday. This volume rise indicates a surge in traders’ interest and liquidity in Bittensor, boosting its bullish outlook.

In addition, CoinGlass’ data shows that the futures’ OI at exchanges in Bittensor reached $361.15 million on Monday, up from $131.94 million on March 4, levels not seen since early November, and has been steadily increasing to around $331.95 million on Friday. An increasing OI represents new or additional money entering the market and new buying, which could fuel the current TAO price rally.

Bittensor Price Forecast: TAO bulls are in control of the momentum

Bittensor is trading above $289 as of Friday, up over 15% so far this week. The near-term bias is bullish after price reclaimed the broken descending resistance trendline, with TAO now holding well above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which cluster between roughly $218 and $268 and underpin the advance. 

Momentum conditions reinforce the upside tone, as the Relative Strength Index (RSI) on the daily chart at 77 stands firmly in overbought territory, indicating strong bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) line holds above its signal and remains in positive territory, though the recent contraction in MACD values hints at slowing upside pressure after the steep run from mid-month lows.

Immediate resistance is seen at the horizontal barrier near $305.30, which aligns just above the 38.2% Fibonacci retracement at $294.30 measured from the $539.40 high to the $142.80 low, creating a dense supply band around the current price. A daily close above $305.30 would open the way toward the 50% retracement at $341.10, with the broader bearish Fibonacci structure only easing meaningfully on sustained trade above that zone.

On the downside, initial support is located near the 23.6% retracement at $236.40, ahead of the rising 50-day EMA around $218, with a break back below these levels signaling that the present bullish phase is fading and exposing deeper retracement toward the psychological $200 area.

(The technical analysis of this story was written with the help of an AI tool.)