The price of Bittensor's native token, TAO, has experienced significant volatility, marked by a sharp rejection at a key resistance level followed by a potential trend reversal breakout. Initially, TAO faced a decisive rejection at the $180 support-turned-resistance (S/R) flip zone, triggering an 8% decline on the 4-hour chart. The token subsequently fell to trade at $168.07, representing a 24-hour drop of 5.5%, and hovered just above a crucial support level at $165.45.
The technical structure indicated that a break below the $165.45 support could expose the $160 level, continuing a bearish lower-high structure. Conversely, a successful defense of that support could lead to a recovery targeting the $175 to $178.82 resistance zone. Long upper wicks on the chart near $180 clearly illustrated the selling pressure and rejection at that level.
However, the narrative shifted as TAO broke out from a falling wedge pattern on the 4-hour timeframe, a technical structure often signaling the end of a corrective phase. This breakout followed a prolonged period of consolidation and base-building near the $163 to $165 support zone, where repeated dips were met with steady buying rather than panic selling.
The breakout suggests buyers are regaining control in the short term. If momentum is sustained and broader market conditions remain stable, the technical setup supports a continuation move higher. The first key resistance sits near the mid-range of a broader descending channel, with a more significant target in the $230 to $240 region, which would represent a gain of 25% to 40% from recent levels.
Analysts caution that the upside is not guaranteed. TAO still trades below key long-term moving averages, indicating the broader trend remains cautious. A failure to hold above the broken wedge resistance could result in a false breakout, shifting focus back to lower supports. Furthermore, TAO's trajectory remains susceptible to wider market conditions, particularly Bitcoin's price movements and overall crypto market risk appetite.
