Bittensor (TAO) Rebounds 4.9% Near $421, Traders Target $740 Breakout Amid Double-Bottom Pattern

Bittensor (TAO) has been trading within a defined range between $190 support and $740 resistance since early 2023, with recent price action suggesting a potential shift in momentum. The token, currently hovering near $407, has reclaimed the $421 Fibonacci retracement level following a 4.9% 24-hour pullback, signaling a possible reawakening of bullish sentiment. Analysts, including Ali, note that this recovery aligns with technical indicators pointing to a potential rally, particularly if the price sustains movement above $420 [1]. Key resistance at $520—aligning with the 0.786 Fibonacci level—could act as the next critical threshold, with a breach likely to trigger a push toward the $740 range high [1].

The $740 level, a historical resistance area, remains the focal point for traders. A sustained move above this level could validate a broader bullish case, with Fibonacci extension targets extending to $1,115 and beyond. However, the path to this target is contingent on overcoming intermediate barriers and maintaining volume strength. Recent on-chain activity shows $185 million traded in the last 24 hours, indicating robust interest, though the weekly close above $520 is seen as a necessary validation step for the upside narrative [1].

Technical analysis also highlights an 18-month accumulation phase forming a macro double-bottom pattern, a structure often associated with continuation breakouts. Bitcoinsensus notes that TAO’s “coiling up” within this range suggests pent-up demand, with the potential for an explosive upward move if the price escapes the upper bounds. The integrity of this pattern, however, depends on the token clearing $740 without rejection between $520 and $740, which could delay the bullish thesis [1].

While the $740 target is widely discussed among traders, it is not a guaranteed outcome. Analysts emphasize that the token’s trajectory remains subject to broader market conditions, including macroeconomic factors and sector-specific dynamics in the AI-driven blockchain space. A failure to break through the range could redirect focus to the $190 support level, where further consolidation or bearish pressure may emerge [1].

Market participants are advised to monitor key on-chain metrics, such as funding rates and open interest, for real-time signals of market positioning. The current setup reflects a balance between caution and optimism, with traders weighing the potential for a breakout against the risks of prolonged sideways movement. As Bittensor’s ecosystem continues to evolve, the $740 milestone will serve as a litmus test for the token’s ability to transition from a consolidation phase to a sustained uptrend [1].

Source: [1] [Bittensor (TAO) Coils Inside Range, Traders Target $740 Upside] [https://blockonomi.com/bittensor-tao-coils-inside-range-traders-target-740-upside/]