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

Key takeaways

What led to TAO’s recent 12% gain?

TAO stock rose 12% after resolving a $28 million hack investigation, restoring investor confidence and attracting $25 million in new capital inflows.

What’s next for TAO price?

TAO is approaching the $447 resistance level. A successful breakout could push it towards $476, with a potential yearly high at $588.

Ask, my dear [TAO] The company posted a 12% gain in the past 24 hours after the investigation into a $28 million hack linked to the project was resolved, restoring investor confidence.

With $25 million added to the derivatives market, TAO is now a resistance distance away from reclaiming the previous year’s all-time high (ATH).

The leading AI coin is starting to gain strength again after suffering a 44% decline in recent weeks.

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

The investigation boosts investors’ expectations

Latest update on investigation The $28 million TAO hack case in 2024 appears to have sparked renewed optimism.

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

With a civil suit now filed, this positive development has been reflected in the recent recovery in TAO prices.

Source: Coinglass

Community sentiment reflects this upward shift. On October 17, about 74% of investors were optimistic about TAO.

This number has since risen to 86%, indicating an increasing likelihood of more capital flowing into the asset.

The permanent market remains strong

Investors in the perpetual futures market continue to maintain a bullish stance. According to CoinGlass, open interest — which represents the total number of unsettled derivatives contracts — rose 9.95% to $26 million.

The funding rate also remained positive, indicating that most of the new contracts are long positions as traders anticipate further price increases.

Source: Coinglass

but, Spot investors They have been taking profits consistently over the past two days, which has contributed to moderate selling pressure.

So far, the sell-off has totaled $5.25 million, suggesting that short holders could trigger an additional downward move.

A new high on the horizon

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

Failure to break above this level may lead to a retest of the lower support areas. However, continued bullish momentum could push TAO to the next resistance level at $476.

Source: Trading View

This area remains the last hurdle before TAO can record a new yearly high at $588.

Indicators such as the Relative Strength Index (RSI) are showing increasing momentum, indicating that TAO may soon break through its immediate resistance level.