Bittensor (TAO) Consolidates Near $425–$435 After 35% Surge, Eyes $500 Resistance

Bittensor (TAO) remains embedded in a strategic consolidation phase near $425–$435, with technical indicators underscoring a complex interplay between bullish momentum and key resistance levels. The altcoin has surged 35% over the past three weeks, yet its advance has been repeatedly halted at the $500 psychological barrier, a critical threshold for unlocking further upside potential. On-chain data and momentum metrics highlight a tug-of-war between buyers and sellers, with the former maintaining a faint but consistent edge.

The $500 resistance level has proven formidable despite TAO’s weekly high of $443 in July surpassing June’s peak. This divergence between price action and momentum indicators—particularly the Money Flow Index (MFI), which formed a lower high while prices rose—triggered an 11% correction, pulling TAO back to the $400 support zone. Analysts emphasize that this pullback, rather than signaling a bearish reversal, may represent a healthy consolidation period. The Chaikin Money Flow (CMF) indicator remains above +0.05, indicating sustained institutional buying pressure, even as the asset stabilizes between $425 and $435 [1].

The $400 support zone has emerged as a pivotal battleground, reinforced by liquidation heatmaps that identify it as a strong magnetic point for potential bullish reversals. Coinglass data suggests that the $392–$400 range could serve as a foundation for a rebound, with a break below this level deemed unlikely in the near term [1]. Meanwhile, short-term traders are advised to focus on intraday fluctuations between $420 and $442, where TAO is expected to oscillate ahead of its next directional move.

Bitcoin’s recent 0.65% dip on July 28 added external pressure, contributing to TAO’s consolidation phase. However, the altcoin’s resilience in maintaining a bullish weekly structure—marked by a 35% rally—suggesties a higher probability of a rebound toward the local high of $489 rather than a prolonged downturn [1]. Market participants are urged to monitor Bitcoin’s trajectory, as its performance could influence TAO’s short-term dynamics.

Looking ahead, Bitget’s price prediction forecasts TAO reaching $432.74 by the end of July 2025, a 29.36% increase from current levels. This target aligns with the ongoing consolidation pattern, positioning the $400–$442 range as a critical arena for near-term momentum [2]. Traders are cautioned against overtrading during this phase, as lower timeframe volatility could lead to choppy returns.

The market’s focus remains on whether TAO can generate sufficient volume to pierce the $500 resistance, a move that would validate the bullish case outlined in weekly charts. For now, the technical setup suggests a patient approach, with key inflection points expected to materialize within the next 5–7 days. Analysts anticipate a retest of the $500 level if bullish sentiment strengthens, though a prolonged bearish reversal remains a low-probability scenario given the current on-chain metrics.

Source:

[1] [TAO/USDT Analysis] https://ambcrypto.com/tao-crypto-faces-11-dip-consolidates-below-500-what-now/

[2] [Bittensor Price Prediction] https://www.bitget.com/price/bittensor/price-prediction