AI subnet expansion and DeFi integration fuel gains

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Bittensor gains 8.63% to $163.60 today

Highlights

Bittensor is expanding its decentralized AI infrastructure by doubling its subnet count from 128 to 256, aiming to enhance machine learning capabilities.
The project is integrating with DeFi and stablecoin ecosystems, while reduced open interest in TAO derivatives signals shifting market sentiment.
TAO trades at $163.60, well below MA-20 ($192.86), with immediate support at $147.51 and low probability (<20%) of a sustained rise above $172.

Infrastructure expansion and DeFi links reshape sentiment amid falling derivatives interest

Bittensor is advancing its decentralized AI infrastructure by scaling its subnet count from 128 to 256 to boost machine learning capabilities. The project is also integrating with decentralized finance and stablecoin ecosystems, reflecting ongoing efforts to capitalize on structural shifts within the crypto sector. On-chain data shows reduced open interest in TAO derivatives, and regulatory developments as well as prospects for institutional adoption, such as potential ETF inclusion, remain influential factors.

Bearish momentum persists as major supports hold and signals diverge

TAO remains under technical pressure with its price below all major moving averages, confirming bearish momentum on daily and weekly timeframes. The Ichimoku Kijun marks resistance at $209.20, while support sits near the Hull Moving Average at $147.51. Momentum indicators are weak overall: MACD on D1 and W1 signal negative trend, ADX shows a strong but stalling downtrend on D1, and both RSI (31.13) and CCI (–98.79) on D1 indicate the market is near oversold. The Stochastic RSI signals a strong buy on D1 but is nearly overbought on intraday levels, suggesting divergence between oscillators and momentum, while Bull/Bear Power still favors sellers despite intraday flips hinting at a short-term bounce.

Limited breakout odds as bearish bias narrows forecast range

For the coming week, TAO is likely to trade within a volatility band of $150 to $172, centering on the current level. The probability of a sustained rise above $172 is low (less than 20%) given predominantly bearish trend signals, while a move below $150 would suggest further downside momentum. The baseline expectation is for sideways price action in the $150 – $172 range unless resistance at $172 is convincingly breached, or a breakdown below $150 triggers a fresh leg of selling.

Anton Kharitonov, expert at Traders Union, notes that Bittensor (TAO) remains structurally weak below all major moving averages, with momentum signals staying negative despite recent technical developments and ongoing DeFi integration. He sees seller control persisting for now, and expects mostly sideways movement unless key resistance levels are reclaimed. Regulatory and institutional factors could shift sentiment, but technicals point to limited upside. "Unless TAO reclaims $172 and sustains above, the base case is defensive — I see no clear long setup yet."

Last time, analysts noted that Bittensor (TAO) is trending lower, with bearish technicals confirmed by indicators and a sustained downtrend marked by lower highs and weak buying activity. The $200-$240 resistance remains pivotal for reversal, while support is limited, increasing downside risk if current levels break.

Source of Data: TAO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.