Bitcoin News Today: TAO's Wedge Breakout Could Signal AI Token's Next Big Move

Bittensor (TAO) has been under pressure in recent weeks, forming a falling wedge pattern that is often interpreted by traders as a potential bullish reversal setup. The pattern, characterized by a narrowing range between ascending support and descending resistance lines, suggests that selling pressure may be waning. Traders are closely watching whether TAO can break out of the pattern, as such moves can signal a shift in market sentiment and the beginning of a new upward trend [1].

Currently, TAO is trading near the upper trendline of the wedge, with price action showing signs of tightening. Analysts suggest that if the price can break through this level with conviction, it could mark the beginning of a larger move higher. A successful breakout would initially target the $350 to $380 range, a level that has previously acted as a resistance. Breaking through this zone would indicate a strong shift in momentum and could open the path toward $450 [1].

Conversely, if the price fails to break out, it is likely to face renewed downward pressure. The $280–$300 support zone has historically served as a critical level for TAO. Holding this level is seen as crucial for maintaining any bullish momentum. A break below this range would likely increase bearish sentiment and potentially extend the downtrend [1].

In the broader context, Bittensor remains one of the most prominent AI-related tokens in the cryptocurrency market, with a current market capitalization of approximately $2.19 billion [3]. As of the latest data, TAO is priced at $256.24, reflecting a 3.7% decline in the last 24 hours. However, the token has seen a 1.2% increase in the past week, indicating a slight stabilization in its price movement. The 24-hour trading volume stands at around $88.85 million, highlighting continued interest in the asset despite its recent volatility [3].

The potential for TAO to rally is also being influenced by broader market conditions. For example, Bitcoin (BTC) has recently regained some bullish momentum, briefly rising above $113,000 before retreating. This development has led some analysts to speculate that favorable macroeconomic conditions, including the potential for a Federal Reserve rate cut in September, could benefit riskier assets like cryptocurrencies and, by extension, AI tokens like TAO [2]. The possibility of a rate cut has increased the odds of a broader market upswing in the fourth quarter, which could provide a tailwind for TAO should it confirm a bullish breakout.

Given the technical and macroeconomic factors at play, TAO is at a pivotal juncture. Traders and investors are closely monitoring key price levels for signs of a potential reversal or continuation of the downtrend. A successful breakout from the wedge pattern would not only provide a short-term upward thrust but could also signal a broader trend change, rekindling interest in the token after a period of consolidation. Conversely, a failure to break out could lead to renewed bearish pressure and a retest of key support levels [1].

Source: [1] Is This the Setup That Puts Bittensor (TAO) Price Back on the Map? Here’s What the Chart Reveals (https://captainaltcoin.com/is-this-the-setup-that-puts-bittensor-tao-price-back-on-the-map-heres-what-the-chart-reveals/) [2] Two AI tokens with potential to rally as Bitcoin leans into ... (https://www.mitrade.com/insights/news/live-news/article-3-1100383-20250905) [3] TAO to USD: Bittensor Price in US Dollar (https://www.coingecko.com/en/coins/bittensor/usd)