Bittensor’s TAO token is starting to paint a far more encouraging technical picture after enduring months of downward price pressure. Since the start of the year, TAO had been locked in a relentless downtrend, setting consistent lower highs and lower lows. However, the narrative may now be shifting. TAO has recently broken above a significant structural lower high — the first real breach of its bearish pattern in months. This development suggests that sellers may be losing momentum, and that a trend reversal could be on the horizon — but traders are watching one final confirmation level before celebrating.
Currently, TAO finds itself at a crucial technical crossroads. Price action is testing the golden 0.618 Fibonacci retracement level — a point that frequently acts as either strong resistance or major support. Alongside this, the anchored Volume Weighted Average Price (VWAP) from the downtrend peak is also pressing into the same zone, offering additional confirmation that this is a battle-ready region. Importantly, the Point of Control (POC) — the area where most trading activity has occurred — also converges here, building a strong “confluence cluster” where bulls must prove themselves.
If TAO can form a valid higher low at this confluence zone, it would strongly increase the probability of a sustained trend reversal. A successful defense could ignite a powerful bullish Wave 3 structure, targeting the previous range high, which would amount to an impressive 200% move from current levels. For traders seeking high-risk, high-reward setups, this scenario is beginning to look increasingly attractive — provided that the necessary structural confirmations fall into place.
Bittensor Bulls Position for Range Expansion After Prolonged Accumulation
Zooming out, TAO’s broader chart reveals a textbook accumulation range. While day-to-day action has been frustratingly choppy, price has largely respected the long-term range boundaries. The recent rally from the range lows suggests that buyers are stepping up aggressively — a common feature before major breakouts occur.
Accumulation structures often feature sharp rejections followed by slow, grinding recoveries, and TAO seems to be following this classic blueprint. If the current higher low confirms above the POC and VWAP levels, the table will be set for a bullish expansion phase — with the first major target being the prior highs near $700.
Volume trends are also starting to align with this bullish view. Recent impulsive moves have been backed by noticeable spikes in volume, indicating real buying interest rather than short-term speculative churn. Sustained volume strength will be key in validating any breakout attempt in the weeks ahead.
Nonetheless, the risk of a failed retest cannot be ignored. If TAO fails to defend the current confluence area, it risks slipping back into its prior consolidation structure — potentially delaying the bullish breakout for several more weeks. Cautious optimism is the theme of the moment.
In conclusion, TAO is perched at a pivotal technical juncture. If bulls can maintain momentum and lock in a convincing higher low, the doors open for one of the most explosive rally setups across major altcoins — a move that could deliver 200% returns for those positioned ahead of the curve.
