Bittensor’s 66% monthly rally – Now, 2 factors that can propel TAO past $450

• TAO’s new token system allows users to actively participate in the governance system by staking the asset.
• The community stays positive on TAO’s upward trajectory, which could help the asset.

Press-time data showed Bittensor [TAO] making an upward move to the high region as it gained 2.64%. This recent move comes amid the asset’s 17.78% rally in the past week.

Market analysis shows that community interest in TAO aligns with its ecosystem update, adding to the potential for a major market rally.

Ecosystem update turns out positive

The market sentiment for TAO has remained bullish following the implementation of its dTAO upgrade, which essentially gave Bittensor network users the ability to vote, improving governance efficiency.

This upgrade included the introduction of new tokens known as Alpha Tokens, which are not traded on the secondary market but can be swapped only for TAO.

This has added to TAO’s utility, which is evident in its past month’s rally of 66%, according to CoinMarketCap. The community has since maintained its bullish expectations for the asset.

CoinMarketCap’s community sentiment shows that 83% of 57,500 TAO holders expect the asset to rally.

How will this impact TAO fundamentals?

This upgrade has been instrumental for several key reasons.

Since the launch, there has been a growing demand for TAO, as it has become the only way to purchase the Alpha Tokens needed to participate in voting activities.

The implication is that as the need for these Alpha Tokens increases for governance, it directly contributes to TAO’s demand.

This demand has been followed by a constant issuance of TAO to the market, which is now nearing a new all-time high of 8 million.

Interestingly, this issuance was met with growing staking activity on the network. Currently, approximately 6 million TAO has been staked.

Staking is an approach where users lock their assets for a certain duration, which earns them a reward for doing so.

Impact on the chart

On the chart, TAO appears to be aiming for a major price rally as market sentiment shifts. AMBCrypto noted some key levels on the chart using the Fibonacci retracement line.

Currently, TAO is at a critical juncture, with a resistance level at $389.6, which is one of the key levels it needs to overcome. Leveling higher would take the asset to its nearest targets of $458 and then trade higher to $526.

It’s important to note that at each level marked on the chart, the price above could act as a resistance level, forcing a pullback of the asset and allowing it to drop lower.

If more ecosystem updates turn out positive like this one, it could carry the momentum, trading into higher levels on the chart.