A glimmer of hope in a volatile market for Bittensor TAO. The cryptocurrency market has continued to face strong turbulence in 2025. Ethereum (ETH), widely seen as the industry barometer, has...
The cryptocurrency market continued to face strong turbulence in 2025. Ethereum (ETH), widely considered the sector’s barometer, experienced a disastrous first quarter with a steep drop of 45% – its worst start to a year since 2018. This downward trend spread to high-growth sectors, including tokens focused on AI like Bittensor (TAO), which has dropped by nearly 42% since the beginning of the year.
However, amid this fear and uncertainty, TAO is showing promising technical signs. The token has surged over 10% in the last 24 hours, indicating that the bulls are starting to regroup. Could this mark the beginning of a broader recovery?
An examination of the weekly chart reveals a promising technical formation – a double bottom pattern, a bullish reversal signal that often emerges at the end of prolonged downtrends.
The first low of this pattern formed in March 2024 after TAO was rejected near $765, triggering a sharp correction. After a significant bounce, the token soared over 344%, reaching a peak near $744 in December. However, this peak was short-lived as TAO retraced nearly 77.8%, finding crucial support around $167 – marking the second low.
This second test of support seems to have sparked a reaction, with TAO now trading near $254, reflecting growing buying interest in this key demand area.
Indeed, the POC in 12H is at $256.5. The POC represents a key level where the market has found a balance between buyers and sellers, often serving as both support and resistance. Traders use it to identify areas of interest to enter or exit a position.
Currently at $259.3, TAO is testing this strong resistance level. If the bulls take charge, TAO could continue its upward trend in the coming days. If sellers take control, TAO could fall back to at least $228, or even lower to $193.
From an indicator perspective, the MACD (Moving Average Convergence Divergence) on the weekly chart is starting to rise, hinting at a potential bullish cross. This could signal the beginning of a change in momentum, aligning with the price structure on the chart.
The next immediate target for the bulls is the 50-week moving average, currently around $391, and then the major resistance at $491.
A confirmed break above this moving average would be a significant trend reversal signal and could pave the way for a retest of the neckline resistance at $743 – a major level that, if breached, would complete the double bottom pattern and could initiate a new bullish phase.
TAO has shown resilience by holding a key support and printing a potentially powerful reversal pattern. Although the path to a complete recovery remains uncertain, the current structure provides bulls with a solid technical foundation to build upon. Traders and long-term investors should monitor price developments around $391, $491, and $743, as these levels could dictate the next major move.
The overall market remains cautious, but TAO gives reasons to be optimistic – especially if the bulls can maintain the momentum and confirm the pattern breakout in the weeks ahead. A short-term retracement should not be overlooked at the end of this week and the beginning of next week as the SP500 also seems to encounter resistance and trend towards a final pullback.
According to trader Degen Hardy, a TAO retracement could offer “a good entry.” Here is a practical guide to buy TAO on the Bitget exchange:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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