Bittensor’s native token, TAO, is entering a crucial technical phase that could shape its trajectory for the coming months. After enduring a turbulent period marked by heavy liquidations and volatile consolidation, the token is now teasing a bullish weekly breakout, triggering renewed optimism among traders and institutional observers alike.
Technical Pattern Signals Shift in Momentum
For weeks, TAO has been coiling within a descending triangle pattern on the weekly price chart, a structure often associated with indecision and pressure build-up. This week’s price action, however, appears to be different. The token has made a decisive attempt to push above the upper resistance boundary, hinting at a potential trend reversal.
Market analysts suggest that a confirmed close above this breakout zone could pave the way for an immediate move toward the $470 range, with longer-term projections eyeing the $770 mark by quarter-end. The key now lies in sustaining buying pressure and holding levels above the resistance as the weekly candle comes to a close.
Bloodbath Before the Surge: A Strategic Flushout
Before this recovery rally, TAO witnessed what many in the market are calling a controlled capitulation event. A severe liquidation wave swept through exchanges, taking out millions in leveraged long positions in a single day. Retail traders, particularly those who placed tight stop orders around $250, faced significant losses as the market wicked down to $245.
Yet, this sharp move appears to have acted as a reset button, flushing out speculative positions and leaving only committed holders with stops positioned more strategically below $240. Interestingly, the rapid rebound that followed indicated strong buy-side absorption, a tell-tale sign of institutional accumulation rather than retail-driven speculation.
From $245 to nearly $429 in a matter of days, the move displayed both power and intent. For seasoned investors, this looked less like randomness and more like a carefully orchestrated liquidity sweep ahead of a breakout phase.
Grayscale Trust Filing Ignites Institutional Excitement
While the chart hinted at a breakout, the real spark came from Grayscale. The digital asset management giant filed for the Grayscale Bittensor Trust ($TAO) with the SEC, marking a major step toward bringing TAO into the regulated investment arena. The announcement was confirmed by the Opentensor Foundation on X, instantly lifting market sentiment.
The filing includes a plan to list TAO over-the-counter (OTC) and reduce its private placement lock-up period from 12 months to six months. This is a critical development for liquidity and accessibility, potentially transforming TAO from a niche AI crypto asset into a serious institutional contender with ETF-like market exposure.
The timing could not have been more striking. As the news dropped, TAO surged over 45% intraday, tapping $413.95, while trading volume exploded beyond $582 million. Its market cap now stands at $4.17 billion, signalling a clear shift in investor confidence and renewed traction among larger market participants.
What Comes Next? Watching the Breakout Confirmation
With momentum now back on TAO’s side, the market’s attention has shifted to weekly candle confirmation. If the token continues to hold above the breakout range, analysts believe a swift move to $470 is highly probable. Beyond that, the $770 target could come into play if institutional flows intensify following the Grayscale development.
For now, TAO stands at a defining moment. The combination of technical breakout structure, liquidity reset and institutional-grade catalysts places it in a rare position among AI-linked cryptocurrencies. The coming days will be critical in determining whether this rally becomes another short-lived spike or the beginning of a sustained bullish cycle backed by regulated market interest.
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