TAO reclaims key support following 13% rally, more gains ahead?

TAO rallied as much as 13% on April 18, reclaiming a key support level and pushing its market cap back above $2.2 billion following reports that Nvidia plans to maintain its presence in China despite new U.S. export restrictions.

Bittensor (TAO) hit an intraday high of $259.2 during Asian trading hours, according to crypto.news, while daily trading volume jumped over 42% to more than $113 million, signaling renewed interest from traders.

The gains followed news that Nvidia CEO Jensen Huang visited Beijing this week and met with Chinese trade officials. During the visit, Huang reaffirmed the company’s commitment to the region, saying Nvidia would “spare no effort” to build compliant products and “unswervingly serve the Chinese market.”

This comes after the U.S. blocked exports of Nvidia’s H20 chip to China, a model designed specifically to comply with earlier export limits. The policy reversal could cost Nvidia a projected $5.5 billion in revenue and has already led to a 7% drop in its stock price as of Wednesday.

Following Nvidia’s confirmation of its continued commitment to China, the broader AI market also reacted positively, rising nearly 4% over the past day. Besides TAO, other top AI coins such as Near Protocol (NEAR) recorded a 3.1% gain, while Internet Computer (ICP), Render (RENDER), FET, and Arweave (AR) posted gains between 4% and 9%.

These projects often react to Nvidia-related developments, given the chipmaker’s key role in powering the AI infrastructure many of them rely on.

Analysts say Nvidia’s ability to adapt will be key to weathering the impact of ongoing trade restrictions.

Komodo’s CTO, Kadan Stadelmann, told crypto.news that Nvidia must work to diversify its supply chains across multiple jurisdictions and maintain strong relationships with global leaders, especially with major industrial powers like China, which is home to 1.4 billion people and a significant portion of Nvidia’s customer base.

“Companies globally cannot predict what comes tomorrow when it comes to tariffs. For that reason, they are now scrambling to rework once reliable supply chains. While many companies, such as Nvidia, will look to manufacture in the US, they will also look to manufacture in whichever jurisdiction is best suited to create specific products, as well as wherever tariffs do not eat too much profit,” he added.

TAO price analysis

Nvidia’s recent move has clearly been taken as a bullish cue by traders, with TAO’s open interest surging over 20% in the last 24 hours. According to Santiment data, its weighted social sentiment also turned positive during the same period.

On the 1-day TAO/USDT chart, the token has successfully reclaimed the $218 support level, which has been acting as a key support level on multiple occasions in the past.

According to market commentator Bitcoinsensus, TAO has formed a double-bottom pattern on the weekly chart, a formation often seen as a trend reversal signal. A confirmed breakout above the pattern’s neckline could open the path toward a medium-term price target of $1,330, according to the analyst.

Looking back at the daily chart, TAO also seems to be breaking out of a multi-month falling wedge setup, another bullish reversal sign. 

With the pattern nearing convergence, the recent breakout suggests sellers are losing control. If the move holds, it could trigger a sustained uptrend, with momentum already backing the breakout. TAO’s RSI has climbed above 55, and its MACD lines have formed a bullish crossover.

Therefore, the initial target will likely be at $470, which is up by 82% above the current level.

Some analysts have set even more ambitious price targets. Per trader, Crypto General TAO could continue $760 as the next major psychological resistance, with a secondary target at $1,340 should strong bullish momentum persist.