• Bittensor ticks up by over 8% as retail interest expands, with futures Open Interest averaging $160 million.
• Grass surges in double digits, supported by momentum indicators.
• The AI crypto sector is rising, with its total market cap climbing to $14 billion.

The cryptocurrency market is regaining momentum amid the war in the Middle East, with Bittensor (TAO) and Grass (GRASS) posting notable gains at the time of writing on Monday, driven by rising investor interest and improving technical indicators.

Meanwhile, the AI-driven token sector is showing renewed strength, with total market capitalization increasing to $14 billion, highlighting a broad-based recovery across AI crypto assets.

Retail demand returns as Bittensor and Grass soar

Interest in AI crypto tokens is rising after extended drawdowns, synonymous with bearish market trends. CoinGlass data reflects the improving sentiment, with futures Open Interest (OI) averaging $160 million on Monday, up from $141 million on March 1. A steady increase in the OI suggests that traders are regaining confidence in the leading AI token and are willing to increase their exposure.

Grass is also experiencing a surge in retail interest, as reflected by futures OI rising to $21.55 million on Monday from $18.55 million the previous day. A further increase in the OI would continue to support Grass’s bullish outlook.

Technical outlook: Bittensor and Grass bulls regain control

Bittensor is trading around $195, with the near-term bias turning cautiously bullish after reclaiming ground above the recent cluster of closes around $185, while momentum improves. The Moving Average Convergence Divergence (MACD) indicator holds above its signal line, while the expanding green histogram bars suggest strengthening upside pressure.

At the same time, the Relative Strength Index (RSI) at 56 shows bullish momentum rebuilding from mid-range levels, consistent with a recovery phase rather than a stretched rally. However, the Bittensor price remains well below the descending 50-day, the100-day and the 200-day Exponential Moving Averages (EMAs), keeping the broader trend bearish even as the short-term tone improves.

Initial support lies near $185, aligning with last week’s reaction lows and the latest breakout area, with further downside protection emerging at $176 and then $170 if the advance stalls. A sustained hold above these levels would keep the immediate recovery intact. On the upside, the first resistance sits near $200, where recent highs align with the broader descending resistance line from above $300. A daily close above this barrier would expose the next bullish target at $210, followed by a more significant hurdle around $235.

As for Grass, buyers are largely in control, holding above the 100-day EMA at $0.30 and the 50-day EMA at $0.25. The MACD indicator’s position above the signal line, as green histogram bars expand, reinforces the bullish grip while prompting traders to lean into risk.

Meanwhile, the RSI at 70 suggests that bullish momentum is building. However, a further increase in the RSI could result in a sudden pullback amid market overbought conditions.

Initial resistance lies around $0.35, aligning with the daily high. A decisive break above that supply zone may open the door for an extended swing toward the range resistance at $0.40. On the downside, the 100-day EMA provides support at $0.30, followed by the demand area at $0.26 and the 50-day EMA at $0.25.

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