Bittensor(TAO) has been really hot these days, with a 9.08% increase over 24 hours. What is the driving force behind this market movement?

First, good news. Traditional financial giants are starting to pay attention to TAO—Grayscale has submitted a Bittensor trust ETF application, and Bitwise has also included TAO in their altcoin ETF plans. This is no small matter, indicating that institutional funds may be flowing in large quantities, which is definitely bullish for the price. From an industry perspective, TAO's position in the decentralized AI field remains solid, and recently, many new products and announcements have been launched in the ecosystem, keeping the AI narrative heating up.

On the technical side, there are also some points of interest. The 7-period EMA has crossed above the 25-period EMA, and the MACD histogram has shifted from negative to positive, all signals of a bullish rebound, suggesting short-term upward momentum.

But here’s the problem. The latest data shows funds are flowing out—hourly net inflow is -276,109 USDT, with a significant drawdown of 275,164 USDT. This indicates that although the price has risen, some traders are quietly selling off.

What’s more concerning is that the RSI has already surged to 74.46(6-period) and 66.15(12-period), clearly entering overbought territory. Historical experience tells us that when indicators are this extreme, a price correction is often imminent. The ATR(Average True Range) has reached 3.18, indicating high volatility, which suggests that sharp fluctuations may occur in the future, increasing uncertainty.

Overall, the feeling is: short-term support from institutions, medium-term logic based on the AI industry, but the technicals are already a bit overheated. If you’re going to buy at this level, be prepared mentally.