Bittensor (TAO) is experiencing a strong recovery, with its price surging 12% in the last 24 hours. This resurgence follows a recent, positive development in the investigation of a $28 million hack that occurred in 2024, significantly boosting investor confidence.
The investigation, detailed by on-chain analyst ZachXBT, revealed that a former Bittensor employee was responsible for the attack that impacted 32 token holders. With a civil lawsuit now in progress, the uncertainty surrounding the event has been largely resolved, leading to renewed optimism and a market upswing.
Market Activity and Investor Sentiment
- Price Recovery: TAO is gaining traction again after a recent 44% drawdown, with market participants showing strong interest and betting on further gains.
- Derivatives Market: The derivatives market has seen an injection of $25 million in Open Interest, which rose by 9.95% to $26 million. A consistently positive Funding Rate suggests traders are heavily taking long positions, anticipating a continued price rise.
- Community Sentiment: Bullish sentiment has increased, climbing from 74% to 86% of investors, signaling a high likelihood of more capital inflow.
- Spot Selling: Despite the overall bullish outlook, Spot investors have been consistently taking profits, with total sell-offs reaching $5.25 million, indicating a potential for minor short-term selling pressure.
Path to a New Yearly High
Technical analysis suggests TAO is approaching a key resistance level at $447.
- Crucial Hurdle: Breaking past the $447 resistance is essential. Failure to do so could lead to a retest of lower support levels.
- Next Target: Sustained bullish momentum, supported by a rising Relative Strength Index (RSI), could propel the asset to the next resistance at $476.
- Yearly High: The $476 mark is the final major hurdle before TAO can attempt to set a new yearly all-time high of $588.
October 2025, Cryptoniteuae