Bittensor price prediction: Overbought conditions signal possible pullback? TAO gains 14.94%

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Bittensor jumps 14.94% to $299.20 today

Highlights

Bittensor's rollout of the 72B-parameter Covenant-72B AI model spurred enterprise adoption and surged demand on Subnet 3.
The subnet’s τemplar token soared 194%, and Bittensor’s December 2025 halving cut daily TAO emissions in half, drawing institutional attention.
TAO exhibits strong bullish momentum above all major averages, but overbought signals suggest sideways or pullback action within a $275.00 to $325.00 range short term.

Institutional interest rises as Covenant-72B triggers compute demand

Bittensor's recent deployment of the Covenant-72B AI model, featuring 72 billion parameters, has showcased its ability to handle enterprise-grade AI workloads and driven heightened compute demand on Subnet 3. This led to a sharp 194% surge in the subnet’s native token, τemplar, and increased institutional interest, including talk of a possible Grayscale ETF approval. Bittensor also completed its first scheduled halving in December 2025, reducing daily TAO emissions from 7,200 to 3,600 tokens.

Overbought signals intensify as TAO trades near new session highs

TAO is trading well above key SMAs, with the current price of $299.20 significantly above the SMA-20 at $216.37, SMA-50 at $194.61, and also above the SMA-200 at $285.08, signaling robust short-, medium-, and even long-term bullish momentum. The Ichimoku Kijun on D1 stands at $231.90, making it immediate support under current conditions. Momentum signals remain positive, with D1 MACD and ADX both giving strong Buy forecasts and confirming trend strength. RSI, Stoch RSI, and CCI indicate overbought conditions, while BBP stands positive at 34.95, showing clear buyer dominance intraday. The AO lends further support to the trend. Today’s session opened with an upward price gap versus the previous close, and TAO now trades near the upper end of the day's range after a high-volatility move up 14.94%. This suggests sustained strength toward session highs, aligning with the strong upward momentum.

Limited upside as overbought conditions prompt pullback risk

For the coming five trading days, TAO is expected to remain within a typical volatility band between $275.00 and $325.00. The probability of continued price increases is very low (less than 20%), indicating that a pullback or sideways move is more likely. In the main scenario, TAO stays confined to the $275.00 – $325.00 corridor, with a potential bullish breakout above $325.00 if buying intensifies, or a bearish drop below $275.00 if overbought signals result in profit-taking.

Viktoras Karapetjanc, expert at Traders Union, sees Bittensor’s breakout as firmly supported by both strong fundamentals and sustained bullish momentum. He notes increased institutional interest and the successful launch of the Covenant-72B AI model as key sentiment drivers. With TAO trading well above major moving averages and robust trend signals, he remains confident in the token's near-term resilience. "TAO continues to show real strength after its recent rally — if the $275.00 level holds, I expect further accumulation and another test of the $325.00 high," Karapetjanc says.

Earlier, analysts noted that Bittensor was in a strong bullish trend but warned that extended momentum and overbought conditions could raise the risk of near-term pullbacks. With continued institutional interest and a confirmed overbought technical regime, the key upside scenario remains a breakout above $325.00, while traders should watch for a corrective move if profit-taking accelerates from current levels.

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.