Bittensor (TAO) Recovers 4.9% Loss, $520 Resistance Key to $740 Breakout

Bittensor’s (TAO) price remains confined within a defined range, with traders and analysts closely monitoring its potential to break out toward $740. The cryptocurrency, which underpins a decentralized AI platform, has been oscillating between a $190 support level and a $740 resistance threshold since early 2023. Recent price action suggests a possible bullish shift, as TAO reclaimed the $421 Fibonacci retracement level following a 4.9% 24-hour pullback. Analysts like Ali have highlighted this recovery as a potential signal of renewed upward momentum, particularly if the price sustains movement above $420 [1].

Technical indicators point to a critical juncture for TAO. Resistance at $520, aligned with the 0.786 Fibonacci level, is seen as the next key barrier before reaching the $740 range high. A sustained close above $520 could validate the upside thesis, with Fibonacci extension targets extending to $1,115, $1,867, and $3,298. However, failure to maintain momentum above this threshold may result in a retest of support, potentially stalling the rally. Volume data shows over $185 million traded in the last 24 hours, underscoring active participation but also highlighting the asset’s susceptibility to rapid reversals [1].

The broader context of TAO’s price structure includes an 18-month accumulation phase, characterized by sideways consolidation. Bitcoinsensus noted the formation of a macro double-bottom pattern, a bullish continuation setup often associated with breakout energy. This pattern, combined with the recent upward coil, suggests the end of a prolonged accumulation period and the possibility of an explosive move higher. Nevertheless, the current horizontal range remains intact until TAO clears $740, with any rejection between $520 and $740 potentially delaying the upside trajectory [1].

Traders targeting the $740 level are advised to monitor weekly closes above $520 as a confirmation of the bullish narrative. Despite a 3.5% weekly dip, the price has stabilized above key support, maintaining the structural integrity of the range. Analysts caution that broader market conditions and macroeconomic factors, such as regulatory developments or liquidity trends, could influence TAO’s trajectory. Position sizing and risk management are emphasized due to the asset’s volatility, particularly in high-impact events [1].

Bittensor’s on-chain activity and institutional interest have grown alongside advancements in its decentralized AI infrastructure, including neural network updates and increased miner participation. These developments have bolstered long-term confidence in the project’s utility, though short-term volatility remains a factor as the market digests technical and macroeconomic dynamics. The absence of significant selling pressure further supports speculative optimism, positioning TAO as a focal point in the AI-adjacent crypto space [1].

Sources:

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