The price of Bittensor (TAO) is gaining traction as it approaches a pivotal breakout level, drawing renewed interest from traders. After a prolonged period of downward pressure, TAO has rebounded from its lows and is now moving into a clearly defined breakout zone. This shift is noteworthy, according to analyst CyrilXBT, as it suggests a possible change in market structure rather than just a temporary rally.
What stands out in the current price action is the noticeable change in momentum. Unlike previous instances where the price would roll over after minor rallies, TAO has managed to maintain its upward movement. While this does not guarantee a sustained bullish trend, it does indicate that sellers may be losing their grip on the market.
The Downtrend Weakens
For an extended period, TAO was trapped in a distinct downtrend, characterized by consistent selling at each bounce and the formation of lower lows. This trend began to shift when the price fell into the $200–$220 range, attracting significant buying interest. Instead of continuing lower, TAO bounced back, forming a higher low, which is often a critical signal that the downward momentum is dissipating.
From this point, the price has started to target the $270–$280 region, which holds historical significance for traders. This level is crucial as it previously served as support before the downturn and subsequently capped prices during the decline.
Importance of the Current Level
The zone that TAO is currently testing is not arbitrary. It marks a decision point in the market, where traders will determine whether to push higher or reassess their positions. If TAO can maintain its position above this zone and convert it into support, the path to higher prices becomes more plausible. CyrilXBT emphasizes that breaking through this resistance could lead to rapid price movements, given the ample space available above.
Even in the scenario where the price faces rejection at this level, it does not signify the end of the upward momentum. As long as the higher low remains intact, TAO may simply undergo a consolidation phase to strengthen its position further.
Looking Ahead for TAO
The future trajectory of TAO hinges on its performance within this breakout zone. Successfully holding above it would preserve the bullish structure and open the door for potential advances toward the mid-$300 range and possibly further. Conversely, if TAO falls below this resistance, it may require additional time to consolidate and build strength. Regardless, the formation of a higher low alters the broader market perspective, indicating that the downward trend may be over.
As the price action unfolds, the next few sessions will be pivotal in determining whether this movement will yield sustained upward momentum. Traders and investors alike should watch closely as TAO navigates this critical juncture.
