Bittensor (TAO) surges 8% to $354.80 on trading activity boost

Bittensor (TAO) has recently attracted attention after a period of sideways trading, with its price surging over 8% in the past day to approximately $354.80. This price movement coincides with a significant increase in trading activity, indicating heightened interest from traders. The recent price action follows two notable developments: the removal of TAO from the Seed Tag list by a major exchange on July 9, which typically categorizes newer or high-risk tokens, and the activation of TAO trading for users in a major market on July 8. These updates have likely contributed to a renewed sense of market trust and confidence in TAO, driving the recent price surge.

The daily chart for TAO reveals that the price is still within a long-term descending trendline, which has capped rallies since the January high near $580. The recent price movement from the mid-$320 range to $354 has brought TAO close to a critical resistance zone at $365–$370. A daily close above this level could signal a shift in the trend outlook from bearish to neutral or even bullish. Conversely, support remains visible in the $225–$250 range, which has historically absorbed significant sell-offs and produced sharp rebounds. This zone is seen as a key invalidation level for the current recovery by bullish traders.

On shorter timeframes, the bullish momentum is more pronounced. TAO price established a higher low between $300 and $310 before surging past the previous swing low at $336, triggering a break-of-structure (BOS). This level now serves as local support near $330–$335. The 4-hour Relative Strength Index (RSI) is near 73, its highest in weeks, indicating strong momentum but also the potential for short-term cooling. A period of consolidation under the descending trendline could allow the market to reset before any breakout attempt.

Currently, TAO is testing a multi-month trendline just above current price levels. If this trendline is broken, the next target could be around $410–$425, an area last seen in May. However, lagging current losses might cause a retreat back to $335, and further losses could push the price down to the $300–$310 support level. Traders will be closely monitoring whether TAO can maintain its position above the previous structure and push into new short-term highs.